Japan’s financial watchdog to press ahead for regulation of unregistered cryptocurrency investment firms
|- Japan’s Financial Services Agency to put framework in place to regulator cryptocurrency investment companies.
- The watchdog are trying to crackdown on companies abusing loopholes.
Japan’s financial market regulator, The Financial Services Agency (FSA), are keen to push forward and regulate, putting framework in place to regulate companies, that provide cryptocurrency investment services.
The watchdog has already made it compulsory for all cryptocurrency exchanges in the country, to have a licence in place, before they start their business operations. However, this would not be necessary for unregistered firms that collect funds in cryptocurrencies. Several businesses in Japan are taking advantage of this loophole in the regulation to provider their services.
These organizations will not come under the FSA’s, in terms of the Financial Instruments and Exchange Act, only restricting businesses that are unregistered collecting funds in fiat and has not mentioned anything explicitly about accepting cryptocurrencies.
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