Japan’s Financial Services Agency (FSA) has revealed that the regulator will adopt Financial Action Task Force (FATF) rules and travel standards for the cryptocurrency sector across the country. Meanwhile, the FATF rule is seen as far-reaching and Global Digital Finance and its members’ advisor, Malcolm Wright, hope that industry innovators can help shape the regulatory debate.
Japanese financial services bureau ready to follow FATF example
Japan, an island nation in East Asia with a population of 125 million, has seen cryptocurrencies spread across the country since its inception, with many exchanges based in a nation-state, such as the now defunct Gox. Japan’s regulator, the Financial Services Agency (FSA), announced Wednesday that the country plans to adopt the Financial Action Task Force’s (FATF) guidelines for providers of virtual assets (VAs) and virtual asset services, also known as VASPs. The 24th. In March, Bitcoin.com’s press center reported on the latest FATF guidance on the application of regulatory standards to decentralized exchanges (dex), defi and NFTs.
Announcement from Japan Financial Services Agency (FSA).
The FSA said in a statement in Japan that it wants the Japan Virtual and Crypto Asset Exchange Association (JVCEA) to cooperate with the FATF’s guidelines. The rule will be applied to the entire island by 2022, SAA added. The Japanese authorities follow the FATF recommendations, and neighbouring South Korea also follows these recommendations. South Korean officials have used the National Tax Service (NTS), and the South Korean Financial Services Commission launched anti-money laundering laws for cryptocurrencies in March.
The Global Digital Finance Advisory Group member asked organizations to respond and participate in the discussion
Malcolm Wright, a member of Global Digital Finance (GDF), an organisation that aims to promote and accelerate best practice in digital assets, hopes that VASPs will be included in the regulatory conversation.
According to GDF, the Global Money Laundering and Terrorist Financing Board consultation closes on 20 April, and GDF will send a response. The association says other organizations can contribute to GDF’s response, and Wright commented. Malcolm Wright is Chair of the SFM Advisory Board and co-leader of the Money Laundering Working Group.
This latest consultation provides industry and regulators with far-reaching guidance, covering not only cash trading and custody, but also decentralised financial transactions (defi), stablecoins and peer-to-peer (P2P) transactions, all of which may fall within the regulatory framework, Wright said. As responsible innovators, it is up to us to respond and contribute to a future shaped by the risks faced by each ecosystem, added the chairman of GDF’s advisory board.
What do you think of Japan’s plan to adopt the latest FATF guidelines and travel regulations? Let us know what you think in the comments below.
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