Financial Institutions and banks have the same Safeguards. Financial regulators in Japan have encouraged global regulators to treat Crypto the same way as they do banking, calling for tougher standards for the sector.
According to the representative director-general of the Financial Services Agency’s Strategy Development and Management Bureau, Mamoru Yanase, Crypto needs to be controlled.
“If you like to implement effective regulation, you need to do likewise as you regulate and oversee traditional institutions,” he expressed, according to a Jan. 17 Bloomberg report.
The comments from Japan’s financial watchdog come following the collapse of FTX in November, which rattled the industry and ignited desperation for regulatory activity.
In contrast to some of his U.S. counterparts, Yanase has acknowledged that the issue wasn’t with Crypto. “What’s achieved the latest scandal isn’t crypto technology itself,” he said, adding that the blame lay with “free governance, careless internal controls and the shortfall of regulation and management.”
He said that regulators in the U.S. furthermore, Europe have been encouraged to enforce the same principles for Crypto exchanges as they accomplish for banks and businesses.
The recommendations have been pushed through the Financial Stability Board, a global organization tasked with the regulation of the digital asset industry.
Yanase added that Countries “need to firmly request” consumer assurance measures from Crypto exchanges. Requests were also laid down for Money laundering, areas of strength for avoidance, internal controls, auditing and divulgence for Crypto businesses.
Yanase offered the remarks while confirming that the Japanese subsidiary of FTX is expected to continue withdrawals starting in February.
“We have been in close communication with FTX Japan,” said Yanase, making sense of that the “client’s assets have been appropriately segregated” from the subsidiary.
The U.S. court presiding over the FTX case agreed to the offer of FTX Japan, among other company auxiliaries. Last week, there were 41 parties interested in buying the Japanese branch of the exchange.
On Jan. 16, Monex CEO Oki Matsumoto said that they were interested in buying FTX Japan, adding that it would be a “excellent thing” for the financial services company if there was less competition inside the local market.