Like Belgium and the rest of the world, Japan has had its fair share of fraudulent cryptocurrency investment schemes in recent times but will move to stop the rise of such projects by amending its laws.
A report from a local news source, Sankei Shimbun, revealed that Japan’s Financial Services Agency (FSA) is going to revise the nation’s Financial Instruments and Exchange Act. The reason behind the revision is to bring unregistered companies that solicit fund in cryptocurrencies under the regulators watch.
Before now investment firms that have not registered with the FSA were banned from accepting fiat money from clients. However, the regulation does not pinpointedly mention cryptocurrencies as part of financial tools that should not be received.
The report also confirmed that the regulator's attention was drawn to the existence of such companies by a recent case involving eight men that fraudulently solicited cash and cryptocurrency funds worth 7.8 billion yen (almost $69 million) from investors.
Japan's FSA reasoned that the men might have escaped conviction if they only used cryptocurrency to collect the funds and to this respect want to fill that loophole before other fraudsters explore it. Raising funds in Bitcoin or even more privacy-focused cryptocurrencies would have made it nearly impossible for the men to be traced.
Japan Getting A Grip on The Crypto Industry
Japan's Financial Services Exchange (FSA) has become active in its efforts to bring the cryptocurrency industry under its watch especially after the infamous hack of crypto exchange, Mt. Gox in 2014.
In more recent times, the agency has separated virtual currencies from legal tenders, begun reviewing the possible approval of a Bitcoin Exchange Traded Fund for its financial exchanges and also given its support to a self-regulatory group created by cryptocurrency exchanges in the country last year.
How these distinct moves will shape the future of Japan's crypto industry landscape will likely be an exciting development to watch.