Japanese Crypto Regulation Call Made
The global crypto crisis in recent months has sent shockwaves throughout various industries - especially the financial sector.
More often than not, the infrastructure of crypto technology itself was blamed. However, Japanese crypto and finance experts have suggested otherwise, putting pressure on global financial regulators to monitor the industry properly.
One of the major statements came from the deputy director-general at the Financial Services Agency's Strategy Development and Management Bureau, Mamoru Yanase. He believes that crypto should be regulated just like any other financial institution on a global level.
"What's brought about the latest scandal isn't crypto technology itself," said Yanase, with regard to FTX's failure in the US and Japanese crypto markets. "It is loose governance, lax internal controls, and the absence of regulation and supervision."
Financial experts from the US are mainly of the opposing opinion, as they consider crypto an inadequate technology - one that's not sustainable for the long term. However, the Japanese crypto viewpoint considers the industry to be of immense significance - only lacking the vigilant and proactive regulation that such a large industry requires.
This entire discussion is based on the FTX case that's been going on since November. The fallout from FTX sent the entire crypto industry into an unforeseen frenzy. And, looking back at it now, it was probably the lack of supervision and control that led to the whole mess in the first place.
Sale of FTX’s Japanese crypto branch imminent
Mamoru Yanase also touched upon the sale of FTX Japan, as the crypto company went bankrupt last year. He mentioned how the Financial Services Agency has helped to "segregate client's assets" from FTX Japan's account to ensure their safety.
Furthermore, he added that clients would be able to withdraw their assets from their FTX Japanese crypto accounts as early as February.
As per a report from Cointelegraph based on a recent court filing in the US, there were 41 parties interested in buying out FTX Japan.
It only makes sense to put in place controls and regulations for crypto transactions, like those for the banking sector globally.
This must be done to avoid future issues like money laundering and stealing of assets. Otherwise, a proper revival of the crypto industry seems far off from happening any time soon - at least in the eyes of Yanase.
Author: Osama Shahid
Osama Shahid is an experienced writer and editor, mainly writing about gaming and crypto. In his free time, he loves to game, playing FIFA 23 and Rocket League.