Japan is devoted to the introduction of crypto regulations, as the Financial Services Agency (FSA) has recently entrenched a new unit to oversee the digital currency regulatory frameworks. Reuters reported on Friday that the move on the part of the Japanese agency and the Ministry came as the country seems to have its focus on the influence of private money on the existing financial system.
While revealing the developments over digital currencies, one of the officials said:
In addition to this, it should be noted that the country is also considering intensifying its diplomatic dialogues with other global economic giants in regulating the booming crypto industry.
Also, it should be known that the Japanese regulators are specifically concerned over the impact of stablecoins that are pegged to fiat currencies.
As of now, just like the other monetary regulators, the Bank of Japan is working on a CBDC and the proposed regulations on the crypto industry will only contribute to that move.
The latest unit of FSA was launched on July 8, and that unit is awaited to oversee the Defi platforms which is the industry that is being seen as the real incendiary of the traditional finance sector.
However, it should also be known that though the FSA confirmed the entrenchment of the new division devoted to crypto, it did not describe its scope.
Moreover, many other countries have escalated their efforts to introduce regulations in the crypto industry.
One of them is South Africa, the country which has seen a lot of high-profile scams related to cryptocurrency recently and at present, is considering introducing the regulations of the crypto industry.