Japan is stepping up efforts to regulate the digital currency

Japan is stepping up efforts to regulate digital currencies on a global basis, with departments reportedly adding staff to impose stricter rules.

A Bitcoin ATM in Japan

Japanese regulators have raised new concerns about the massive growth of the crypto market and are particularly wary of stablecoins, according to a report. Reuters.

Tokyo stands ready to work with global financial regulators to develop stricter rules for private digital currencies, officials told Reuters, adding that Group 7 and G20 regulators have called for stricter rules on stablecoins.

“Japan can no longer leave things alone with such a rapidly expanding global spread of digital currencies,” said an official.

Japan’s Treasury Department is reportedly considering adding staff to scrutinize the industry around the world. The Financial Services Authority (FSA) has set up a new unit to oversee digital currency regulations.

This new FSA entity was launched on July 8th and is tasked with overseeing the global crypto market and focusing on DeFi.

The news comes as the crypto industry has recently drawn increasing attention from global regulators. Many authorities are especially wary of stablecoins, a cryptocurrency that is pegged to an asset or fiat currency like the USD. Global central banks have specifically promoted Central Bank Digital Currencies (CBDCs), digital versions of fiat banknotes, in order to maintain control over national currencies.

Fed chief Jerome Powell said Wednesday that the US CBDC will severely curb people’s demand for Bitcoin and stablecoins. Last week, Vice Governor of the People’s Bank of China Fan Yifei argued that the rapid growth of private payment systems was “very alarming” and warned that stablecoins pose a serious threat to global financial and payment systems.

Good business

According to Cointelegraph

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