Japan’s new Financial Services Agency (FSA) commissioner, Junichi Nakajima, believes the country needs to think carefully before making Bitcoin (BTC) and other cryptocurrencies more accessible to the general public.
Nakajima believes crypto assets like Bitcoin have the potential to bring huge benefits to the public, as a fast and cheap way to transfer money, he explained in an interview with Bloomberg. However, most crypto assets are currently used for speculation and investment.
For this reason, the Japanese regulator believes that careful consideration is necessary before simplifying investments in crypto assets for the general public. Nakajima said the high volatility of crypto markets, due to the absence of underlying assets, is a central reason why the regulator will not allow the creation of crypto investment funds.
Japan has begun to intensify regulatory efforts following the famous cyber attack against the crypto exchange Coincheck, which resulted in the loss of 523 million NEMs, equal to approximately 534 million dollars.
The country has since become a difficult market to trade in for registered cryptocurrency exchanges, Nakajima admitted. The current regulatory framework on crypto exchanges effectively protects customers and meets anti-money laundering requirements, but the commercial situation of most of the registered platforms “it’s quite difficult,Added Nakajima.
The Japanese government aims for global cooperation to regulate digital currencies. To this end, the Japanese Ministry of Finance seems intent on expanding the staff. Additionally, the FSA last month created a new unit to monitor crypto markets and focus on decentralized finance.
Large cryptocurrency exchanges such as Binance and Bybit are not on the list of 31 registered platforms in Japan. The FSA issued a standard warning letter for Bybit in May and Binance in June, accusing both of offering unlicensed crypto exchange services in the country.