FSA News

Japan’s financial regulator has launched a “Payment Innovation Project” backing a joint initiative by major banks and corporations to issue yen-based stablecoins.

Japan’s Financial Services Agency proposed moving crypto oversight from the Payment Services Act to the stricter Financial Instruments and Exchange Act.

The Financial Services Agency and the National Police Agency encourage banks to “further strengthen their user’s protection.”

Although no official date is mentioned for the launch of Binance Japan, the notice stated that the exchange could start after June.

It's still unknown whether U.S. dollar-backed stablecoins like USDT or USDC will be allowed in Japan by June 2023, the FSA said.

The potential legal status of the Japanese Financial Service Agency’s recommendation is not clear as the current legislation is silent on algorithmic stablecoins.

The Japanese subsidiary is one of 134 companies caught up in FTX’s bankruptcy proceedings but has been drafting a plan to return client funds.

Under the orders, FTX Japan will be required to suspend OTC derivatives transactions and related margins as well as new deposits from Nov. 10 to Dec. 9 unless the FSA steps in.

Self-reg entity JVCEA has reportedly received stern warnings to get its act together, as Japan’s Financial Services Agency pushes for the organization to speed up its AML regulation rollout.

Crypto.com will have further requirements before its full license is granted in the “near-term” and FTX said the move would allow it to work “directly with Japanese regulators.”

The financial watchdog in the U.K. has declared that all non-registered ATMs must be immediately closed down or be subject to undisclosed additional action.

Seung-beom Koh said that fintech experts across the globe “find it difficult to see virtual currencies as a financial asset.”

The new regulation will be designed to provide better protection to Japanese investors.

Japan’s newly appointed Financial Services Agency Commissioner, Junichi Nakajima, believes Bitcoin is a quick way to transfer cash, but people use BTC for speculation and investment.

Crypto exchange giant Binance is the latest platform to receive a warning from regulators in Japan for operating in the country without a license.