Same rules for traditional institutions and crypto: Japanese financial regulators
The statement from Japan's financial regulatory agency comes after the collapse of FTX in November, which has prompted calls for regulatory action in the industry
Japan's Financial Services Agency in Tokyo; Image: Toru Hana / Reuters
The officials in charge of financial regulation in Japan are urging international regulators to treat the crypto sector in the same way as traditional banking and to implement stronger regulations for it.
The Deputy DG of the Financial Services Agency's Strategy Development and Management Bureau, Mamoru Yanase, stated that in order to have effective regulation, the same rules and oversight should be applied to both traditional institutions and crypto.
The statement from Japan's financial regulatory agency comes after the collapse of FTX in November, which has prompted calls for regulatory action in the industry.
Unlike some officials in the United States, Yanase does not blame the technology of crypto for the issue but rather the lack of governance, weak internal controls, and absence of regulation and supervision. He is calling for regulators in the United States and Europe to enforce the same regulations for crypto exchanges as they do for banks and brokerages.
The recommendations for stricter regulations on crypto have been proposed through the Financial Stability Board, an international organisation responsible for regulating the digital asset industry.
