Media: Japan considers tighter regulation of cryptocurrencies

The Financial Services Agency of Japan (FSA) has begun discussing tougher rules for digital assets to protect investors, reports Jiji Press.

According to the publication, the FSA intends to revise the regulatory framework by mid-2022. This would allow the agency to “ensure stability in the cryptocurrency market without hindering its growth and innovation.”

Earlier Reuters, citing sources, reported the creation at the FSA a division overseeing cryptocurrency regulation. The move was prompted by growing concerns among authorities that the spread of “new forms of private money” could undermine Japan’s financial system.

Earlier this spring, the agency announced plans to implement guidelines FATF for local cryptocurrency firms. The changes will take effect by April 2022 and will require virtual asset service providers to disclose transaction data.

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