On Wednesday, Japan’s top financial regulator’s newly appointed chief has made a statement saying he believes that there is no need for “excessive” regulation on Japan’s cryptocurrency industry. Toshihide Endo was previously a director-general of the agency’s supervisory bureau and was appointed the commissioner of the FSA in July.
Image credit: The American Chamber of Commerce in Japan
Endo, the commissioner of the Financial Services Agency (FSA) spoke to Reuters on Wednesday and stated that “We have no intention to curb [the cryptocurrency industry] excessively. We would like to see it grow under appropriate regulation.”.
He also said that the Financial Services Agency (FSA) is trying to regulate cryptocurrency exchanges in a manner that protects consumers and does not stifle or undermine innovation.
The newly appointed chief’s comment echoes the statements previously made by FSA representatives. As quoted by The Japan Times, an unnamed executive of the regulator said “We pursue both market fostering and regulation enforcement. … We aim for sound market development.”.
That comment was made around the period that the FSA moved to scrutinize exchanges and ensure that they adhered to a revised payment services law which was passed in April last year. According to Japan’s Financial Services Agency, The new rules defined operational standards for exchanges and set up a licensing scheme for exchanges, as well as, in a world first, recognizing bitcoin as a form of legal tender.
Just this year, in January, one the country’s exchange Coincheck was hacked of $530 million which prompted the FSA to launch inspections and issue “business improvement orders” for exchanges that were presumed to have lacking systems in place.
Sources: Reuters, Japan Financial Services Agency, Japan Times, Bloomberg