Japan’s FSA Vows to Strike a Balance Between Consumer Protection and Promoting Technological Innovation
Japan is both one of the largest crypto markets in the world and one of the most crypto-friendly countries. However, the Japanese government has been increasingly vigilant on the crypto industry as a whole, an understandable stance after the country was hit with what is touted to be the largest crypto heist in history. Despite this increased scrutiny on crypto firms, Japan’s Financial Services Agency (FSA) says it won’t curb the crypto industry excessively.
Japan Remains a Crypto-Friendly Country
The Coincheck hack in January 2018 was a major blow to Japan’s cryptocurrency industry. Touted as the largest crypto heist of all time, hackers were able to breach the crypto exchanges’ defenses and stole around $530 million in cryptocurrencies. Fearing that a similar hack might happen in the future, Japan’s financial watchdog, the Financial Services Agency, had no choice but to impose tougher sanctions on erring crypto firms.
Despite these tough measures, however, Japan remains one of the friendliest countries toward cryptocurrencies. The Asian nation was one of the first countries to recognize Bitcoin as legal tender. In fact, Japan passed the law that recognized Bitcoin as legal tender as early as September 2017, according to a CNBC report.
Finding The Right Balance
After the Coincheck hack, the country maintains the same open-minded stance toward cryptocurrencies. However, the Financial Services Agency just can’t continue to turn a blind eye to crypto firms and exchanges that lack basic internal controls or risk management procedures. Something needs to be done to keep companies in check to prevent problems in the future, and these issues can only be addressed through the right regulations.
But the FSA is adamant that it does not plan to regulate the crypto industry excessively to detriment of the very industry it wants to protect. What the FSA wants is to strike a balance between protecting the interests of consumers while promoting technological innovation, which is, in this case, promoting cryptocurrency adoption.
Perhaps FSA’s stance can best be understood from what commissioner Toshihide Endo told Reuters in an interview:
“We have no intention to curb (the crypto industry) excessively. We would like to see it grow under appropriate regulation.”
Japan’s FSA Vows to Strike a Balance Between Consumer Protection and Promoting Technological Innovation was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.