Japanese Watchdog Urges the US and EU to Regulate Crypto like Traditional Banks

Jan 17, 2023

Japanese Watchdog Urges the US and EU to Regulate Crypto

The Japanese regulator has called for stricter oversight of cryptocurrency in a bid to bring it in line with rules governing traditional banking. The plea to regulators follows the failure of Sam Bankman-Fried's FTX crypto asset exchange.

"Cryptocurrencies have become this big," said Mamoru Yanase, deputy director-general at the Financial Services Agency. "Regulation must be implemented similarly to the way conventional institutions are supervised and regulated."

The crypto sector has taken a hit after the bankruptcy of FTX and fraud charges against the FTX CEO Bankman-Fried, highlighting the gaps in global crypto asset regulation. However, investors in Japan have been shielded from the worst of it due to the country's stringent investor protection rules.

The Financial Services Agency of Japan granted Japanese investors the right to withdraw cash from FTX's domestic affiliate as early as February.

"Cryptocurrency technology isn't what created the latest controversy," added Yanase, who is also a former banking regulator. "It is the result of inadequate governance, weak control mechanisms, and lack of oversight and regulation."

Yanase stated that the Japanese regulatory agency has called on regulators in other countries to supervise virtual currency exchanges similarly to financial institutions and brokerage firms.

His country has been proposing a stricter regulatory framework via The Financial Stability Board – an international entity that is now looking at crypto governance.

In the US, the SEC has announced plans to crack down on digital asset exchanges, whereas the German supervisory authority is pushing for global regulations to protect economic stability. And the central bank of Singapore wants to protect retail customers from the volatility of virtual assets.

According to Yanase, countries should require crypto exchanges to ensure their customers are protected and to prevent money laundering, in addition to the implementation of effective governance practices, systems for internal control, and disclosure of financial data.

Additionally, authorities should be able to take certain measures, such as inspecting these companies on-site to ensure they use offline wallets with client funds responsibly.

The creation of an international dispute-resolution system might be needed in the event of a collapse of a large crypto company, he added. The key question of the discussion of global regulation issues may be how to ensure a sequence of actions, starting with island states and ending with global financial centers.

Subscribe Our Newsletter

Latest News: Analyst Downgrades Rockwell Automation. Intel Stock Price Prediction 2025 Is Looking Promising

Alexander

Latest News: Analyst Downgrades Rockwell Automation. Intel Stock Price Prediction 2025 Is Looking Promising.

Rockwell Automation has been given a thumbs down rating from analysts as its stock trades at 24 times estimated 12-month earnings. Intel stock price prediction for 2025 is looking positive.

Companies
SEC Approves Spot Bitcoin ETF Applications. What to Expect from This Decision

Alexander

SEC Approves Spot Bitcoin ETF Applications. What to Expect from This Decision?

SEC approves 11 spot Bitcoin ETF applications, causing a surge in Bitcoin's price and opening up possibilities for significant investments.

Crypto
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Anton

Trading on Autopilot: The Rise of Crypto Trading Bots
We live in a world of rapid technological advancements, and here it is again – automation. In the world of cryptocurrency trading, in addition to social trading, manual trading, and paper trading, automation is becoming more and more popular as a way to trade crypto and maximize profits.

discover
Red Flags of Liquidity Providers in 2024

Alexander

Red Flags of Liquidity Providers in 2024: How to Find a Trustworthy Partner?

In this article, we will delve into the key red flags to look out for when choosing a crypto or Forex liquidity provider in 2024 to ensure you find a trustworthy partner for your needs.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.