FSA of Japan urged to regulate cryptocurrency companies like banks

The leadership of the Japanese Financial Services Agency (FSA) has appealed to regulators in other countries to treat the cryptocurrency industry like banks and regulate the industry accordingly.

According to Mamoru Yanase, Deputy Director of the FSA Bureau of Development and Strategy Management, the cryptocurrency industry has grown significantly and the need for quality regulation has become obvious. Especially after the bankruptcy of the FTX cryptocurrency exchange.

“The cryptocurrency industry has become very big. If you want to implement effective regulation, then you need to do it the same way you control traditional financial institutions. The recent FTX scandal is not caused by the shortcomings of cryptocurrency technology. Weak regulation, weak internal control and lack of proper oversight led to it,” Yanase stressed.

According to the official, regulators in various countries should “strongly demand” from cryptocurrency exchanges quality measures to protect consumers and prevent money laundering. Robust governance, internal controls, auditing and disclosure procedures need to be in place. At the same time, regulators should have the authority to review crypto-currency companies to ensure that clients’ assets are properly stored and managed.

Earlier it became known that the American exchange Coinbase is gradually curtailing business in Japan, leaving only a few employees who will look after the assets of local users.