- Japan is improving its on-site inspections for all its financial institutions.
- Japan’s FSA is currently looking forward to a positive review from the FATF.
Japan is among the most crypto progressive jurisdictions around the world. However, this not to say that it is lagging behind regulations in the sector. In fact, the country’s watchdog, the Financial Services Agency (FSA) is currently looking forward to a positive review from the FATF. In the latest review, the country was given the lowest rating for the know your customer (KYC) policies conducted in 2008.
According to a publication, Nikkei Japan is improving its on-site inspections for all its financial institutions but most of the focus is on crypto exchanges. The G-20 summit, which is to be hosted by Japan is likely to talk about international regulations for cryptos. Discussions could also touch on ICOs.
Japan is among the first nations to introduce cryptocurrency regulations as from April 2017. However, the country has been subtle in terms of pushing for the regulation taking a sort of hands-off approach. The hack on Coincheck early 2018 saw the FSA stamp down to ensure that security of customer funds was priority on the exchanges. It latter allowed the exchanges to regulate themselves:
“It’s a very fast-moving industry. It’s better for experts to make rules in a timely manner than bureaucrats do.”
As the G20 summit approaches, Japan is looking forward to pushing the group of countries to adopt its regulations.