Japanese regulators want to change attitude toward cryptocurrencies.
Mamoru Yanase, Deputy Director of the FSA Strategy Development and Management Bureau, said that the same guarantees that are typical for banks and other financial institutions should apply in the field of cryptography.
Japan’s financial regulators are calling on global financial structures to reconsider the perception of cryptocurrencies. For the digital money industry, this call is not an unambiguously positive signal. Japanese regulators see a change in attitude toward cryptocurrencies in tightening the rules in this area.
Mamoru Yanase is convinced that cryptocurrency should be in the zone of full control of financial regulators. He believes that this goal can be achieved by applying in the industry the norms that apply to traditional institutions.
The initiative of Japanese regulators, voiced by Mamoru Yanase, was formulated as a reaction to the collapse of the FTX crypto exchange in November 2022. This event was a shock for the industry, which provoked large-scale negative consequences. For many, the need to introduce external regulatory measures has become a necessary step that has not yet been taken.
After the collapse of the crypto exchange, Mamoru Yanase’s American colleagues announced the problems contained in the cryptography system. The Deputy Director of the FSA Strategy Development and Management Bureau does not agree with this opinion. He is convinced that what happened was the result of a lack of proper governance, insufficient internal control, and zero external regulation.
Mamoru Yanase recommended that regulators in the United States and Europe apply the same rules for crypto exchanges as for banks and brokerage houses. These recommendations were transmitted through the Financial Stability Board, a global organization that regulates the digital asset industry.
Mamoru Yanase focuses on the need to create a system of consumer protection on crypto exchanges.