Japan is reportedly taking steps to validate crypto globally
Japan is stepping up efforts to regulate digital currencies on a global basis, with relevant government agencies reportedly trying to increase their staffing to impose stricter rules.
Japanese regulators have raised new concerns about the massive growth of the crypto market, especially cautious about stablecoins, Reuters reported on Friday.
Tokyo stands ready to work with global financial regulators to develop stricter rules for private digital currencies, three Japanese officials said, adding that G7 and G20 regulators have called for stronger regulation of stablecoins.
One official said: “Japan can no longer leave things alone with such rapid global developments in digital currencies.
According to the report, Japan’s Treasury Department is considering an increase in staff to examine the industry around the world. The country’s Financial Services Authority (FSA) is said to have created a new unit to oversee digital currency regulations.
The new FSA entity was formed on July 8 and aims to oversee the broader crypto markets and focus on decentralized funding, a form of blockchain-based funding that doesn’t depend on the centralized financial intermediaries, officials said.
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The news comes as the crypto industry has recently attracted more and more attention from global regulators. Many authorities are particularly wary of stablecoins, a cryptocurrency that is pegged to an asset or fiat currency such as the US dollar. Global central banks have specifically promoted Central Bank Digital Currencies (CBDCs), digital versions of national fiat currencies, in order to maintain control of the currency.
Federal Reserve Chairman Jerome Powell said Wednesday that a U.S. CBDC would curb demand for personal options like Bitcoin (BTC) 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.