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Japan to Intensify Digital Currencies Regulations

Fri, 07/16/2021 - 14:16
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Arman Shirinyan
Japanese officials are aiming for more global regulations against digital currencies and stablecoins
Japan to Intensify Digital Currencies Regulations
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Japanese officials are intensifying efforts to regulate digital currencies globally, according to Reuters. The main concern of the financial regulator is a lack of transparency that may lead to money laundering and tax invasion.

Tokyo officials are worried about the impact that digital currencies have on traditional economical systems. Japan's Financial Services Agency (FSA) established a list of new rules designed to intensify regulations. In addition to FSA, the Ministry of Finance is increasing the number of workers that will oversee digital currency operations.

Officials have stated that they cannot leave the development of digital currencies unattended or to chance. Even though the FSA created a new section for additional regulations, there was no decision on specific measures that would make the use of stablecoins and other digital assets more difficult.

Stablecoins are designed to have a stable value, unlike traditional volatile cryptocurrency assets. Usually, they are tailored to fiat currencies or commodities like gold.

Global regulators in general have begun to look more into stablecoins and other digital currencies. Earlier this month, the Bank of England stated that payment in digital currencies should be regulated in the same way as regular fiat payments.

The main concern of government regulators is the lack of transparency, which makes it an easy tool for money laundering and tax evasion. By creating an additional section, regulators are aiming for additional oversight on stablecoin operations.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.