Japan Wants Cryptocurrency Growth ‘Under Appropriate Regulation’

As such, the financial regulator does not plan on implementing or enforcing excessive rules. Toshihide Endo, commissioner of the Financial Services Agency (FSA), told Reuters in an interview on Wednesday that the Japanese government agency and integrated financial regulator — which is responsible for overseeing banking, securities and exchange, and insurance sectors — is primarily interested in finding the right regulatory solutions that both protect consumers and encourage innovative growth.

Cracking Down After Coincheck

Japan notably became the first country in the world to officially regulate cryptocurrency exchanges following the high-profile hack of the Tokyo-based cryptocurrency exchange Coincheck early this year. The hack resulted in the loss of $530 million in cryptocurrency funds. Following the Coincheck debacle, the FSA began inspecting cryptocurrency exchanges and required many of those interested in operating legally within the country to improve security measures. As a result, multiple exchanges temporarily or permanently suspended their operations.

Tough Times for Traditional Banking

The cryptocurrency industry is not the only financial sector currently on the Endo’s mind. The FSA commissioner also told Reuters that some regional banks should be seriously considering how to effectively construct long-term business models in the face of what may turn out to be tough times for the traditional banking industry in Japan. What do you think about FSA commissioner Toshihide Endo’s statements in regards to helping Japan’s cryptocurrency industry grow while protecting consumers? Do you think the country has thus far set a good example for how cryptocurrency exchanges should be regulated on a national level? Let us know your thoughts in the comments below!