The Financial Services Agency (FSA) of Japan has issued a new draft report that details the country’s latest regulatory framework for cryptocurrencies and initial coin offerings (ICOs). Japan, which was hit by two major cryptocurrency exchange hacks this year, began tightening policies to restore consumer protections.
The draft, published on Friday, covers several topics, including hacking and how to regulate operators whose registrations are pending.
According to a report published by Bitcoin.com, the draft was addressed at the 11th study group meeting of the FSA where it met little objection.
Highlights
According to the report by Bitcoin.com, the draft introduces several other measures.
“The FSA has proposed measures such as introducing a registration system, maintaining an internal control system, separating the management of exchanges’ and customers’ cryptocurrencies, publishing response policies in case of hacking incidents, and retaining funds for repayment.”
Writes Michael Ou, CEO of CoolBitX, an Asian-based blockchain security company,
“While news of government intervention makes headlines, private companies in Japan are also working hard to improve the crypto market: here are more than a dozen Japanese cryptocurrency exchanges. With a growing number of Japanese businesses accepting cryptocurrencies as payment, and with many startups in Japan’s thriving tech scene, it’s fair to guess that continued investment will inspire continued innovation.”