Japan is known worldwide as one of the Bitcoin-friendly countries. It has not taken hard measures against ICOs or Bitcoin itself or other cryptocurrencies. Now, the Financial Services Agency published a document clarifying the policies towards ICOs and cryptocurrencies in general.
Financial Services Agency (FSA) Document
As in the majority of the states, the intention of the institutions is to protect cryptocurrency users. What they claim is that users are vulnerable due to the lack of regulations and that are not protected. Possible scams may arise in the cryptocurrency world (as in many other situations) and it should be regulated.
The FSA discussed the same topic: the protection of digital currency exchange users. The intention is to protect users from blockchain technology “which was not seen before,” according to this document. The agency believes that in order to protect users, daily business management and system management are required.
“Since the beginning of 2017, the virtual currency price fluctuations and various movements have been seen in the virtual currency market such as currency forking,” reads the statement. The intention of the FSA is to show how harmful can these currency movements be. They also mark that users investing in these cryptocurrencies are subject to situations that can be harmful for their finances.
“It is necessary to monitor whether the system is in place, we will respond to changes in the environment surrounding the virtual currencies for protecting users, such as verifying that appropriate explanation / information provision for users is in place,” says the statement.
What About the FSA and the ICOs?
Initial Coin Offerings experienced an incredible year. More than 3 billion in funds have been raised by ICOs and the next year is expected to grow further. Some countries like China have banned ICOs and others are regulating the market. The main reason is that ICOs can be really dangerous for investors or could be used for money laundering.
The FSA commented about the increase in the token sales. The agency believes that the fund settlement law is applicable to Initial Coin Offerings. But this was not always the way of thinking of this agency.
“For fraudulent ICOs, we will respond in cooperation with ministries and agencies, promote a voluntary response by the industry and users. We aim to protect users by alerting them to ICO risks,” wrote the FSA in an older document.
Is Japan Still a Bitcoin-friendly Country?
Japan is one of the biggest trading hubs on earth and its currency accounts for the majority of the Bitcoin trading volume. In April this year, Japan passed a law that recognizes Bitcoin and other cryptocurrencies as a means of payment.
Japan has approved different companies as operators of cryptocurrency exchanges. But the Asian country has also passed different laws regarding the cryptocurrency market. Enterprises, financial institutions and exchange platforms must follow strict anti-money laundering requirements.
Will Japan keep being a friendly country towards Bitcoin or not?
Image Courtesy of Pixabay
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