Japanese regulator can change rules for crypto platforms

Posted 03 July, 2018

Japan's Financial Services Agency is reportedly considering possible revision of the regulation for cryptocurrency exchange operations.

According to the local media, the regulator may apply the Financial Instruments and Exchange Act (FIEA) to the cryptocurrencies. At the same time, this segment is regulated by the Payment Services Act. In case of a positive determination, with the new regulation, the exchanges will have to provide better protection of their clients. Moreover, under FIEA financial companies will have to control funds and securities of their clients separately from corporate assets.

For now, the effective legislation covers provides that cryptocurrencies are legally considered as the same means of payment as e-money. At the same time, if the regulator switches to FEIA regulation, cryptocurrencies will become financial products. In addition, the new rules may allow crypto derivatives, like ETF.

FSA has started considering revision of the current regulation following the hack of Coincheck this January. As a result, the exchange lost more than NEM coins worth $500 million and the regulator launched an inspection of 15 unregistered platforms. During the investigation, it was detected a number of weaknesses and gaps in the protection and transactions control.

Previous story

03 July, 2018 14:58

← Thai companies joint forces targeting new crypto exchange

Thailand-based financial companies, members of the Association of Securities Companies (Asco), are considering opportunities for joint setting up of a new cryptocurrency exchange. The association is in talks now with the financial regulators to become able to offer crypto exchange services. It is going to fill the application for the corresponding license with the Securities and Exchange Commission.

Thai companies joint forces targeting new crypto exchange

Next story

03 July, 2018 11:31

Coinbase Custody service open for large investors →

The major US-based company dealing with cryptocurrencies – Coinbase – has reportedly started collecting funds from institutional investors in the USA and EU. The company stated that the Coinbase Custody service is now officially available for business. The service is aimed at the institutional and other players which can invest over $10 million into cryptocurrencies.

Coinbase Custody service open for large investors
Write a comment
 
Prove you’re not a bot + 17 = 22