FSA wants Japanese Crypto Industry to grow in the regulated environment, says the commissioner of the watchdog, Toshihide Endo. He adds that it is important to find a balance between protection and innovation.
23 August, AtoZ Markets – Japan’s financial regulator’s commissioner has stated that the organization wants to contribute to the growth of cryptocurrency market in regards to the regulatory matter.
FSA wants Japanese Crypto Industry to grow
Financial Services Agency (FSA) in Japan is responsible for oversight of the financial markets across the country. The agency is monitoring the activities of participants and strives to ensure the maximum possible compliance with its regulations.
Toshihide Endo is a current commissioner of Japan’s FSA. He has been quoted by a number of online media reports as saying that he sees the FSA’s goal for developing the cryptocurrency sector as finding a “balance” between consumer protection and technological innovation.
He has added:
“We have no intention to curb [the crypto industry] excessively. We would like to see it grow under appropriate regulation.”
Japan Cryptocurrency Market Regulations
Back in July, the Japanese regulator has been looking into changing the legal basis for regulation of cryptocurrency exchanges to oversight by the Financial Instruments and Exchange Act (FIEA). This is instead of the current legal foundation, the Payment Services Act.
This implies that exchanges will feature stronger customer protection systems in the future. The FIEA requires securities companies to manage customer funds and securities separately from corporate assets.
In June, the Minister of Finance Senator Fujimaki has asked the Deputy Prime Minister Taro Aso about the crypto transaction taxation. He has asked whether these transactions should be taxed through a “separate settlement taxation,” instead of their current classification as “miscellaneous income.”
Moreover, earlier this month, the FSA has published the results of its on-site inspections regarding a number of cryptocurrency exchange operators. The regulator noted that it gives “priority to investor protection” while carrying out these inspections.
Think we missed something? Let us know in the comments section below.