The shared financial reporter was informed that Japan has now developed a manual on cryptocurrency regulatory proposals and is ready to distribute it to G20 leaders and international finance executives.
With the upcoming G20 summit, as the host country of the summit, Japan has the right to formulate most of the progress of the conference, and this time, Japan vowed to push its keen encryption regulation to internationalization.
Leading G20 cryptocurrency regulation
- Hong Kong Securities Regulatory Commission releases position paper on supervision of virtual asset trading platform [Simplified Chinese]
- German regulator approves $280 million in Ethereum token sales
- Research | Hong Kong is aligning STO compliance
- Supervision clearly "open the door to block the evil door" ideas "chain Shanghai South" into a digital asset test field
- Yang Dong: Urgent need to strengthen supervision and governance of blockchain technology
- Hong Kong and Abu Dhabi amend cryptocurrency regulations in conjunction with Financial Action Task Force
It is understood that the "handbook" is mainly related to cryptocurrency transactions, and the Japanese minister hopes that global leaders will agree on a common international regulatory framework.
You know, although some G20 countries, including Japan, have strict regulations on cryptocurrencies, there are still few other countries that have little regulation in this regard.
Earlier, at the G20 summit in Argentina in November 2018, Bank of Japan Governor Haruhiko Kuroda said that "the cryptocurrency requires some imprisonment."
Based on this situation, Japan has launched this cryptocurrency regulatory advice manual, and wants to use this opportunity of the G20 summit to improve the imbalance of supervision in such countries.
It is understood that in order to arouse the attention of countries on the regulation of cryptocurrency, the following points are mentioned in the "Handbook":
Protect customer asset systems
International security agreement
A system that provides information to customers, especially when hacking.
Not only that, but the Handbook also outlines two destructive hacking attacks on Japanese exchanges last year.
In fact, as early as the end of 2018, there was news that Japan might dominate the G20 cryptocurrency regulation and continue to work with other G20 countries to take a tough stance on cryptocurrency.
The reason for this speculation is that on the one hand, it is based on the lack of attention paid by other countries or institutions for the regulation of cryptocurrency, and on the other hand, after the successive hacking attacks, the Japanese government has shown that it wants to strengthen encryption supervision. determination.
At that time, the Financial Stability Board (FSB) issued a report saying: "FSB believes that crypto assets will not pose a significant risk to global financial stability, but still need to be vigilantly monitored according to the speed of the market."
At the same time, the chairman of the US Federal Reserve Federal Reserve also held the same view that although the cryptocurrency is not large enough to constitute a financial threat, it will continue to pay attention to the regulation of cryptocurrency.
While other countries or institutions adopt conservative or continuing attention attitudes, Japan has formulated various regulatory policies to combat the non-compliance of cryptocurrencies due to successive hacker attacks, making it the most rigorous global cryptocurrency regulatory environment. One of the countries.
In response, an FSA official said: “It is almost impossible for Japan to deal with this problem alone (money laundering). Even if trade is limited to domestic transactions or regulation is strengthened, it is still not enough to combat money laundering. If all 20 industries and emerging Countries and regions (G20) all adopt the same preventive measures, which will be the best."
After the heavy losses, the hard work
In the early morning of January 17, 2018, Coincheck of the Japanese digital currency exchange announced that a $530 million new currency (NEM) was hacked out of the exchange and disappeared due to hacking.
This is another sensational global theft that the Japanese exchange faces after the Mentougou incident. This has also completely ignited Japan's alarm for cryptocurrency regulation. Since then, Japan's cryptocurrency regulation has entered a period of rapid development.
In February 2018, shortly after Coincheck was stolen, the Japanese Finance Agency announced an inspection of 32 cryptocurrency exchanges, including 16 unlicensed exchanges.
In March, the Japanese Finance Agency announced seven tickets for virtual currency trading platforms, requiring two ICO platforms, FSHO and Bit Station, to close all virtual currency trading businesses, and announced the same day that 140 credits were located in Japan’s four major financial bureaus. Currency platform violations.
On May 7, the Japan Financial Services Agency (FSA) released a five-point agenda for cryptocurrency exchanges, including:
1. The cryptocurrency trading platform will need to follow robust security standards.
2. The cryptocurrency trading platform needs to develop a thorough customer understanding (KYC) process.
3. The FSA will require the trading platform to obtain best practices for asset management activities.
4. Restrictions on special cryptocurrency types, FSA has added some privacy cryptocurrencies to the blacklist.
5. The trading platform needs to provide a clear platform organization structure and operating mode.
It can be seen that after the Coincheck incident, the Japan Financial Services Agency began a comprehensive rectification of the Japanese exchange, for the non-compliant exchanges, the Japanese Financial Agency may be punished or shut down, even though there have been many exchanges during this period. Unsustainable regulatory pressure to announce withdrawal from the Japanese market, but Japanese regulation is still further tightened.
However, freezing three feet is not a cold day. Who can think that under the continued high pressure of Japanese regulatory policy, in September 2018, hacking attacks came again.
In the early morning of September 20th, Zaif, the Japanese crypto exchange, announced that corporate and user funds worth 6.7 billion yen (nearly $60 million) were lost in hacking.
In response, the FSA once again announced that it would strictly investigate the issue of theft of the exchange and issued a business rectification order to the Tech Bureau, the parent company of Zaif, the cryptocurrency exchange. This is the third rectification notice after March and June. Not only that, the FSA also asked the company to submit a written report to the supervisory department before September 27.
With the help of this incident, the Japanese Finance Department's supervision of cryptocurrency has once again become stricter. In addition to the established standards, it has strengthened the supervision of taxation, ICO, restricted margin trading leverage, and self-discipline.
When the time came to 2019, Japan completed a 2.5-year verdict on the former CEO of Mentougou. Subsequently, the Japan Virtual Business Association issued a proposal on "ICO's new regulation."
1. On the expansion of the Japanese exchange, including stable currency.
2. The relevant provisions on tokens and settlement in the restricted object of the Commodity Exchange Act.
3. Supervision of securities tokens.
4. Restrictions on practical tokens.
Recently, the Japan Financial Services Agency has also requested to strengthen the management of cold wallets in virtual currency transactions to prevent internal personnel from committing crimes.
It can be seen that from the beginning of 2018 to the present, Japan’s regulation of cryptocurrency has made great progress, and its scope covers all aspects of cryptocurrency derivatives, and this is also for its next G20. At the summit, the right to speak on cryptocurrency regulation was aggravated.
Development under supervision
It is worth mentioning that as one of the most stringent countries in the global cryptocurrency regulatory environment, the development of cryptocurrency in Japan has not only failed to succumb to strong supervision, but has further developed.
First of all, in the cryptocurrency exchange, although many exchanges are unable to withstand the high pressure of Japan's supervision and choose to withdraw from the Japanese market, but under the temptation of business licenses, there are still many well-known exchanges admire "into the sun."
Previously, according to the latest data from the Japan Financial Services Agency, more than 190 companies have entered the country's digital currency market. However, since the beginning of this year, only one of the trading companies has obtained a license, and there are fewer than 20 compliant trading platforms in the market.
In addition to the cryptocurrency exchange, in the original intention of the Japanese Finance Agency to protect user rights, Japan's cryptocurrency market also ushered in the Japanese people's enthusiasm for digital currency.
According to reports, today, more than 1 million people in Japan are investing in digital currency. The website coinhills data shows that since the end of 2018, the bitcoin yen trading has approached the market share by nearly 50%, and it has also surpassed.
Not only that, but in the field of cryptocurrency payments, Japan is not far behind.
At the beginning of 2019, Japan’s Lotte said it would establish a new settlement service “Rakuten Payment”. To this end, Japanese Senator Fujiwara Kenji also discussed with the president of Lotte Wallet on popularizing virtual currency settlement. In March 2019, the Japan Financial Services Agency approved the Lotte Wallet under Lotte.
For the Japanese "Amazon" to join, previously, cryptocurrency analyst Joseph Young posted on Twitter:
“I firmly believe that Japan will be the first major encryption market to see real mainstream merchants adopting cryptocurrencies. Lotte and Bic Camera, two large Japanese e-commerce retailers, have been working hard to promote encryption technology to local users. ”
Japan, which once ate a big loss, did not choose a one-size-fits-all approach to the cryptocurrency of the thorns, but actively explored its compliance path.
Nowadays, under the "incentives" of hackers, Japan's regulation of cryptocurrency has become more and more stable. I believe that by the time the G20 comes, this achievement will surely sprout in the next international cooperation supervision.
Author: Sharing Finance Neo Editor: Alian