Japan’s Financial Services Agency ( FSA ) is considering tightening its crypto regulations in the country after the Liquid exchange was hacked . The stated goal of the regulator is to protect local merchants, as the number of investors is on the rise and digital assets are gaining prominence in financial strategies.
The agency has had its eyes on the crypto ecosystem for a few months now, and has even set up a task force dedicated to overseeing digital finance and advising the government on the matter . In addition, these same experts are part of the official initiative to launch a central bank digital currency (CBDC); commonly called digital yen .
The Japanese authorities have been very careful about their role in the crypto market, as they have fought for the safety of their investors, but have avoided at all times marginalizing the country from financial innovation. The objective of the new regulations – which point towards the middle of next year – is to provide greater stability to the internal crypto market and guarantee its development .
Following various hacks to exchanges operating in the country (such as Bitpoint in 2019 or Liquid this month), the FSA made the decision to adopt the roadmap of the Financial Action Task Force for 2022 . All crypto service provider companies in Japan must share the information of their operations , in order to avoid money laundering or the financing of illicit activities.