The Financial Services Agency of Japan Tokyo; Picture: Toru Hana/Reuters
Officials in charge of financial regulation in Japan are urging international regulators to treat the crypto industry the same as traditional banking and implement stricter regulation for it. Deputy CEO of the Strategy Development and Management Office of the Financial Services Agency, Mamoru Yanase, said that to have effective regulation, the same rules and supervision should be applied to traditional institutions and crypto. . The statement from Japan’s financial regulatory agency comes after FTX’s collapse in November sparked calls for regulatory action in the industry. Unlike some officials in the United States, Yanase does not blame crypto technology for the problem, but rather the lack of governance, weak internal controls, and lack of regulation and oversight. He calls on regulators in the United States and Europe to apply the same regulations for crypto exchanges as they do for banks and brokerages. The recommendations for stricter crypto regulation were offered by the Financial Stability Board, an international organization responsible for regulating the digital asset industry. Yanase highlighted the need for countries to enforce consumer protection measures for crypto exchanges and money laundering prevention measures, as well as strong governance, internal controls, auditing and transparency for crypto brokers. Yanase also confirmed that the Japanese arm of FTX is expected to resume withdrawals in February and that the agency is working closely with FTX Japan to ensure client assets are properly segregated from the branch.The US court hearing the FTX case has approved the sale of FTX Japan and other company subsidiaries. There were 41 potential buyers interested in buying the Japanese branch of the exchange. Monex CEO Oki Matsumoto expressed interest in buying FTX Japan, saying it would be beneficial for the company as it would reduce competition in the local market.Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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