Japan overhauls FSA’s Crypto and FinTech policies. Changes were performed in relation to various departments in order to make the organization better suited to address the new issues and challenges within the financial sector.
18 July, AtoZ Markets – Japan has made changes to the way its financial regulator, the Financial Services Agency (FSA) operates. Thanks to the overhaul of FSA’s ecosystem, now, the regulator is better equipped to deal with fintech-related sectors, this including cryptocurrencies.
Japan restructures FSA’s Crypto and FinTech Policies
According to local media outlets, changes were performed in relation to various departments in order to make the organization better suited to address the new issues and challenges within the financial sector.
The newly created Strategy Development and Management Bureau has replaced the Inspection Bureau. The department will reportedly work on the development of the financial strategy policy and manage issues that are related to the digital currencies market, money laundering and Fintech. In addition, the bureau will be responsible for administrative duties and oversight of financial institutions.
The Policy and Markets Bureau will replace the Planning and Coordination Bureau. It will be tasked with the developing of a legal framework that addresses the rapid growth of the fintech sector. The Supervision Bureau has remained in place.
FSA ‘s Active Role in Cryptocurrency Oversight
The FSA has commenced a number of enforcement actions against several crypto exchanges so far in 2018. Back in March, the agency has sent out “punishment notices” to as much as seven cryptocurrency exchanges. It has also temporarily suspended the activities of five registered exchanges based on the allegations that they lacked proper internal management systems.
Earlier this month, the FSA has announced that it was looking into amending the legal framework for the Financial Instruments and Exchange Act (FIEA). 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.”
Mr. Aso has stated that the prospect was “doubtful” referring to the concern over the community’s reaction to the “tax fairness.”
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