Japan publishes the draft report on the new cryptocurrency regulations

Regulations

The Japanese financial services agency has published its draft report outlining the new rules on cryptocurrency. The report contains measures in areas that are not currently dealt with in existing laws such as hacking incidents, self-regulation, judged merchants, private currencies and margin of negotiation.

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New cryptographic regulatory framework

Japan's leading financial authority, the Financial Services Agency (FSA), has published a draft report outlining the country's new regulatory framework for cryptocurrencies and early money offerings (ICOs) on Friday. The report, which was discussed at the eleventh meeting of the agency's study group, contains recommendations from the previous 10 meetings of the study group. According to local media, there was no major objection to the measures proposed in the report, so the FSA should develop a regulation based on its content.

<img class = "size-medium wp-image-261735 alignright” title=”Japan publishes the draft report on the new cryptocurrency regulations” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/fsa-300×200.png” alt=”Japan publishes the draft report on the new cryptocurrency regulations "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/fsa-300×200. png 300w, https: //news.bitcoin.com/wp-content/uploads/2018/12/fsa.png 458w "sizes =" (maximum width: 300px) 100vw, 300px”/>One of the main themes of the report concerns the prevention and treatment of hacking incidents such as hacks of two major Japanese encryption exchanges: Coincheck in January and Zaif in September. The FSA will require cryptographic exchanges to strengthen the "management and maintenance of client properties", such as the management of private keys. For the protection of consumers, the FSA states that it is necessary that the exchanges have a net equity "equal to or greater than the amount equivalent to the currency and repayment funds" in case of violation. The document also outlines countermeasures against cryptographic exchanges that go bankrupt.

self-regulation

<img class = "size-medium wp-image-261747 alignright” title=”Japan publishes the draft report on the new cryptocurrency regulations” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/self-regulation-300×219.png” alt=”Japan publishes the draft report on the new cryptocurrency regulations "width =" 300 "height =" 219 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/self-regulation- 300×219.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/self-regulation-324×235.png 324w, https://news.bitcoin.com/wp-content/uploads/ 2018/12 / self-regulation.png 502w "sizes =" (maximum width: 300px) 100vw, 300px”/>The FSA explains that it recognizes rapidly changing technological innovation and sees the importance of collaborating with accredited self-regulatory organizations. "For this reason, we urge members to join the certification [self-regulatory] Association "and developed systems according to their rules, the FSA wrote in. In October, the Japan Currency Currency Exchange Association (Jvcea) obtained accreditation from the FSA to be able to legally apply self-regulation rules.

The document also explains that the FSA deems it appropriate to refuse or cancel the registration of operators who do not adhere to "the accredited association and comply with self-regulation" or establish their own internal systems to comply with self-regulation rules.

Estimated traders

<img class = "size-medium wp-image-261743 alignright” title=”Japan publishes the draft report on the new cryptocurrency regulations” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/application-form-300×300.png” alt=”Japan publishes the draft report on the new cryptocurrency regulations "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/application-form- 300×300.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/application-form-150×150.png 150w, https://news.bitcoin.com/wp-content/uploads/ 2018/12 / application-form.png 400w "sizes =" (maximum width: 300px) 100vw, 300px”/>The report is also aimed at "affiliated dealers", which are companies authorized to handle cryptographic exchanges while their applications are being reviewed. Currently there are three: Coincheck, Lastroots and Everyco & # 39; s Bitcoin. The report emphasizes that some of them have been aggressively publicized and rapidly growing their businesses, but many of their clients are unaware of not being registered.

The FSA has proposed a series of measures for them. First, they can not expand their activities or list additional coins until they are registered. Furthermore, they can not acquire new customers or advertise or solicit for the purpose of acquiring new customers. They must also publish a notice on their websites about the status of their registration.

Some other measures

<img class = "size-medium wp-image-261736 alignright” title=”Japan publishes the draft report on the new cryptocurrency regulations” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-300×217.png” alt=”Japan publishes draft report on new cryptocurrency regulations "width =" 300 "height =" 217 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg- 300×217.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-324×235.png 324w, https://news.bitcoin.com/wp-content/uploads/ 2018/12 / self-reg.png 389w "sizes =" (maximum width: 300px) 100vw, 300px”/>Other measures outlined in the report include restrictions on private currency lists, derivative transactions and trading margin.

Furthermore, the report discusses the ICO regulation. ICOs "may be subject to securities regulation," the FSA noted, adding that "we are implementing administrative measures". Depending on their structure, tokens may be subject to regulation by the Financial Instruments and Exchange Act or the Fund's liquidation law. The document also reveals that the FSA considers it appropriate that third-party organizations establish a framework and examine the businesses and financial situations of token issuers.

Furthermore, the report concerns encryption companies in custody that do not fall under existing laws. The FSA has proposed measures such as the introduction of a registration system, the maintenance of an internal control system, the separation of the management of cryptocurrencies in exchanges and customers, the publication of response policies in case of hacking incidents and maintaining repayment funds.

What do you think of the new regulatory framework proposed by Japan for cryptocurrencies? Let us know in the comments section below.

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