Japan Might be Over-Regulating its Thriving Crypto Market | Mapping out the Coinbase Mafia
|Dec 14, 2018|| 1|
“The EU has an opportunity to become a leading actor in the field of blockchain and international trade, and that it should be an influential actor in shaping its development globally, together with international partners.” — European Parliament
The Big Block
Japan was once the darling of entrepreneurs in the cryptocurrency sector, adored by crypto startups, exchange operators, and investors alike. In recent months, however, the country has begun to demonstrate signs of over-regulation, possibly swayed by a series of high profile scandals and security breaches since the 2014 Mt. Gox bankruptcy.
Since the appointment of Nobuchika Mori, the longest-serving finance minister of Japan and the former commissioner of the Financial Services Agency (FSA), Japan has seen its cryptocurrency and blockchain sector grow rapidly. But, following his leave, the government has started to reassess the growth rate of the local cryptocurrency sector to push certain regulatory frameworks that could create a difficult environment for both companies and investors.
In October, as reported by Reuters, the FSA granted local cryptocurrency players a self-regulatory status, acknowledging the necessity of a quick response to potential unforeseen issues and situations.
A senior FSA official said in a press conference that experts in the industry need to be able to set appropriate regulatory frameworks to ensure that digital assets are not used in money laundering or are at risk of being vulnerable to hacking attacks.
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