EddieJayonCrypto
2 Dec 24
The article discusses the Financial Services Agency (FSA) in Japan considering adjustments to digital asset rules, particularly for applications acting as brokers between users and exchange platforms, as well as the regulation of stablecoins. The FSA aims to balance supporting innovation while safeg...
Japan's financial regulator is considering changes to digital asset rules, including classifying applications as brokers and managing stablecoins. The Financial Services Agency (FSA) aims to balance innovation support with investor asset protection. There are proposals for lighter regulations for non-exchange digital asset services, addressing concerns from past regulatory caution, particularly after the 2014 Mt. Gox Bitcoin exchange collapse.
The FSA's Payment Services Working Group also discussed stablecoins, proposing different regulations for stablecoins issued on "permissioned" and "open" blockchains. The regulator remains cautious about open blockchains, expressing greater preference for permissioned ones. This ongoing distrust of open blockchains reflects the FSA's approach to stablecoins, which have garnered increased regulatory attention in Japan and globally.
The article highlights Japan's careful consideration of digital asset regulations and the potential impact on various digital asset services in the country. It emphasizes the FSA's efforts to navigate the balance between fostering financial innovation and ensuring the stability and security of the financial system.