Cryptocurrency exchanges like BitMEX, Coinbase and many more are the leaders in the industry that have shown the world what can be done with the new crypto technologies and the possibilities are endless until the operations are not hindered by the regulators. But the regulators have a different view on the subject as they have the vision of making the industry to grow under proper regulations. This may be necessary as of whether they like it or not, they might need some regulation to flourish in the right direction to nurture the new technology in the appropriate direction.
Japan’s primary financial regulators share similar views on this as the yare planning to add personnel to keep a track on the crypto trade around the nation and possibly around the globe.
During a group study meeting focused mainly on cryptocurrency on Wednesday, Financial Service Agency (FSA) vice commissioner, Kiyotaka Sasaki revealed the agency’s “biggest problem” is in the way it deals with new operators vying for licenses to establish cryptocurrency exchanges in the country.
The financial regulator is raising a team of 30 individuals screening license applications from cryptocurrency exchange operators to meet towering interest at a time when mainstream companies like Yahoo, Rakuten and LINE are entering the sector.
The focused team will monitor crypto trading, unregistered operators and the review process of new applications. With a focused policy to specifically allocate personnel to the registration review process, Sasaki revealed the agency is tacking its understaffing concerns by adding 12 additional members to the team.
Japan has over 3.5 million crypto traders with annual trading in bitcoin alone totaling $97 billion in 2017. Ethereum, ripple (XRP), bitcoin cash (BCH) and litecoin (LTC) are also among the most-traded coins in Japan.
Toshihide Endo said, “We have no intention to curb [the cryptocurrency sector] excessively. We would like to see it grow under appropriate regulation.”
After pioneering legislation that recognized bitcoin as a legal method of payment in April 2017, Japanese law mandated all new cryptocurrency exchanges – domestic or international with a presence in Japan to register and earn a license from the FSA.
The FSA’s new chief has ruled out excessive regulation of the industry, backing the industry to grow while a number of key Japanese technology giants including Yahoo, Rakuten and LINE begin to operate their crypto exchanges.