Japanese Government Pushes for Bitcoin Regulation

Bitcoin Japan LegislationRegulators in Japan aren’t taking any chances, and they have started pushing virtual currency regulations. In a legislation meeting, members of the Japan Financial Services Agency have discussed security issues involving digital currencies. The meeting additionally included digital money trade administrators in Japan, who gave some knowledge into the present status of the bitcoin economy in Japan and around the globe.

After the Mt. Gox CEO Mark Karpeles’ arrest in August, security agencies and regulatory bodies have been aiming for further Bitcoin regulation as more implications of the adoption of cryptocurrency came to light. Fairly recently, the Financial Systems Council, an organisation focused on banking, securities, and exchange, held a discussion among entities that operate on bitcoin.

“The FSA plans to introduce a regulatory mechanism as early as next year in response to the oversight vacuum exposed by the arrest of MtGox chief Mark Karpeles, who ran what was once the world’s largest bitcoin exchange.”

Taro Aso, the Deputy Prime Minister and Minister of Finance proposed the advancement of an administrative bill for digital monetary standards including bitcoin, after the Japanese government finishes its broad exploration on bitcoin, and Mt. Gox occurrences which prompted a gigantic monetary embarrassment for the nation over.

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Aso proposed New York’s Bitlicense like archive, which requires bitcoin trades to enlist and apply for a permit to lawfully work in the nation. Additionally, the Japanese law implementation and controllers plan to incorporate a KYC approach in the archive, which will require computerized coin trade administrators and new businesses by law to record delicate money related information and client data.

With regard to the Blockchain technology, a publication released by Japan’s Ministry of Economy, Trade, and Industry (METI) states recognition of the potential of Bitcoin’s blockchain technology:

Blockchain Technology

Excerpt can be found here.

After all discussions, regulators will consider benefits of Bitcoin regulation for exchanges and startups.

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Learn more about the Bitcoin Asia situation here at Coin News Asia.

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