According to reports, the financial regulator of Japan is considering the possibility of changing the existing structure of regulation of cryptocurrency exchanges to strengthen regulations to protect customers and enhance security of investors ‘ assets.
In April 2017, the financial services Agency (FSA) financial regulator of Japan have contributed
the adoption of the law in which bitcoin was recognized as legitimate means of payment. The new rule also required operators of local crypto-currency exchanges to register with the FSA and obtain a license from the regulator.
According to local media Sankei, after more than a year after this momentous event, the regulator found that the measures taken in the framework of the Law on payment of means of protection of investors is insufficient, and that they require revision.
In particular, as reported, the FSA is considering raising cryptocurrency exchanges under the scope of the Law on the financial instruments and exchange (FIEA) and the rules applying to them, which fall under a traditional company engaged in transactions with securities and stock brokers.
FIEA requires that companies regulated in accordance with this law, ran the client funds separate from corporate assets. In General, FIEA offers a much more robust standards for the protection of investors, the report said, including more stringent rules of verification of the company’s activities, for example, on the subject of insider trading.
In the message mention the infamous hacking of the exchange Coincheck in January of this year, which was stolen coins NEM $530 million, as the main reason for stricter regulation.
The consequences of one of the largest hacks in the history of the cryptocurrency industry has affected the work of the FSA. First, the regulator has intensified its scrutiny of the activities of the grounds by conducting inspections
in offices, resulting in several of the exchanges were suspended. Shortly thereafter, the FSA has tightened
rules of registration of cryptocurrency exchanges, and then released
five new rules for operators of cryptocurrency platforms.
In addition, on June 18 in Japan joined
banned anonymous cryptocurrency which has compelled local exchanges to delist altcoins XMR, DASH, REP and ZEC. And at the end of June, the FSA ordered
six bitcoin exchanges to make improvements, so that the Bitflyer platform indefinitely suspended
input and output means for conducting KYC checks on clients.
If the proposed changes in the regulation of kryptomere will enter into force, the cryptocurrencies will be classified as «financial products». This, in turn, can lead to the fact that they will be able to have an impact on main financial markets. Background this appeared at the end of last year. Then Tokyo Financial Exchange, one of the leading stock exchanges of Japan, said
about plans to launch futures on bitcoin in 2018.