- Japan’s latest FSA commissioner shares his thoughts on crypto regulations in the country.
- He says it’ll take more convincing to loosen up crypto regulation in Japan.
- The present regulations are working well to protect users and combat money laundering.
In detail, he says that it is going to take a lot more to make crypto investments easy for the people of Japan. Specifically, Nakajima says he has an open mind on the possible benefits that come from assets like Bitcoin.
In particular, he sees that Bitcoin has the power to allow its users to transfer cash speedily and at minimal costs. However, at the moment, Japan is mostly using this asset to make investments and not simply to transfer money.
He highlights the fact that new challenges tend to appear almost every day. One such challenge comes from the rapid integration of firms steadily involving themselves in Decentralized Finance (DeFi) activities.
We need to consider carefully whether it is necessary to make it easier for the general public to invest in crypto assets, says Nakajima.
To add on, he stresses how in the US investors have various options when it comes to investing in crypto and similar digital assets. Meanwhile, Japan is still heavily restricting its users in this aspect.
However, in July, the FSA set up a study group consisting of outside experts to look into the possibilities for regulatory responses to DeFi within Japan in the near future. For this, investors are flocking to Nakajima for hints and suggestions on the matter.
Moreover, Nakajima helped craft Japan’s first regulatory framework for crypto assets which includes the registration requirement for exchanges in 2017. Since then, the nation is exercising much tighter rules. This is mainly due to the large coin theft that took place in 2018.
To be specific, Coincheck Inc — the Tokyo-based exchange, was the victim. In response to the current regulatory framework, Nakajima says it has been very effective in protecting users and combating money laundering. However, many registered exchanges still seem to be having a tough time. Lastly, more challenges always seem to pop up. The latest of which would be Peer-to-Peer (P2P) DeFi platforms.