New FSA Commissioner Junichi Nakajima believes that regulators in Japan need to assess all risks before making BTC and other cryptocurrencies more accessible to the general public.
In an interview with Bloomberg, the new head of the Japan Financial Services Agency (FSA), Junichi Nakajima, said crypto assets could benefit the public as a quick and cheap way to transfer money. However, in his opinion, most of the crypto assets are now used for speculation and investment.
Therefore, the FSA Commissioner believes that careful consideration of all risks is required before making it easy for the general public to invest in cryptoassets. Nakajima said that the high volatility of the cryptocurrency markets due to the lack of underlying assets is the main reason the FSA does not authorize the launch of cryptocurrency investment funds.
Japan has stepped up its regulatory efforts against the cryptocurrency industry following a hacker attack on Tokyo’s Coincheck cryptocurrency exchange in 2018, which resulted in the theft of $ 530 million in NEMs.Since then, the country has become a difficult market for registered cryptocurrency exchanges to do business, Nakajima admits.
The current regulatory framework for cryptocurrency exchanges effectively protects customers and meets anti-money laundering requirements. But the business situation for most of the listed exchanges is “pretty dire,” Nakajima added.
Recall that last month, the Japan Financial Services Agency (FSA) created a Decentralized Finance (DeFi) oversight unit, and the Ministry of Finance was planning to increase the number of employees in its cryptocurrency unit.
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