On Monday, the Japanese Financial Services Agency panel decided that Japan needed to improve its oversight mechanism for cryptocurrencies. Back in June, the Japanese government started to consider new regulations to combat the threat of virtual currencies being used for terrorist funding, money laundering and other illegal activities. Cryptocurrency exchange operators were invited to share any knowledge or ideas on regulation they had.
As there is reported to be around $161 million worth of Yen traded daily in bitcoins, it is perhaps natural that Japan wants to tighten its digital currency regulation. Japan-based users of bitcoin are reported to be in the tens of thousands in number, whilst there are around 600 bitcoin-friendly businesses in the country.
Since the Mt Gox disaster, it is unsurprising that the meeting discussion covered the need for registering cryptocurrency exchanges and protecting customer assets. However, Japan’s position on imposing consumption taxes to bitcoin trade was also brought up.
Currently, a regulatory mechanism is planned to be introduced by the Japanese Financial Services Agency as early as next year, spurred on by the Mt Gox debacle.
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