As is starting to happen more and more frequently nowadays, the countries that are taking the lead in the Cryptocurrency industry are now taking it one step further and beginning to regulate the digital economy. This is fantastic news for one and all.
Japan Assesses Exchanges
The latest to follow the likes of Malta and the United Kingdom in regulations is Japan who has just seen its Financial Services Agency complete a tour around the country checking up on its Cryptocurrency exchanges. Although the agency did find quite a few concerning activities during its assessment, this can be seen as a positive and an opportunity for things to be improved. Issues found are things such as missing compliance and internal audits along with weak business models to name a few. What follows now will be the necessary review and update on Japan’s regulatory framework. This is to make certain that any new companies that would like to apply for a licence – to bring a new Cryptocurrency exchange to the market – will adhere to stricter new policies and procedures. It is already clear that said exchanges will be required to complete an onsite inspection before the latter stages of the assessment take place. The Financial Services Agency will also be a lot tighter with its assessment of new exchanges. The Japanese are really looking to make things much tougher so that the reputation of its Cryptocurrency industry cleans up.
Heaps Of Assets
Additional details from the Financial Services Agency also suggest that there has been a huge leap up to $7.1 billion in digital assets managed by the country’s Cryptocurrency exchanges in under a 12 month period. This is a phenomenal figure. However, even though these statistics are extremely high, especially considering this is six times more than it was previously, there are still a very small amount of staff responsible for this massive sum. Per head, it works out that one member of Cryptocurrency exchange staff is managing an incredible $29.7 million. That is a lot of weight on each employee’s shoulders. On top of this, the agency is also worried about whether there is enough control over money laundering and if the necessary procedures are in place to stop this from happening going forward.
Cryptocurrency transactions are also being subjected to a lot stronger restrictions to ensure that said transactions are anonymous and therefore a lot safer for all concerned.
The Constant Review
It is wonderful to see that the Japanese Financial Services Agency is taking its responsibility seriously and is very keen to start chipping away at the negative elements of the new Cryptocurrency industry. More countries should certainly follow it’s lead in the hope that hacking and scams soon become a thing of the past. The agency is dedicated to its cause and will endeavour to do whatever it can to guard the safety and security of its digital economy. It has already confirmed that it is taking the protection of investors very seriously including its own internal restructuring process to align itself. Let’s look forward to others following suit.