The Japanese financial authorities suggested regulators impose laws on the Crypto sector more likely on traditional institutions.
Japan is a technology adoptive region and this country is known for its ability to fight against inflation. Since the very beginning, the Japanese authorities have imposed strict rules to prohibit the illegal activities associated with cryptocurrencies. At present, the Crypto tax rate in Japan is 5%-45% depending on the income tax bracket and other income sources.
On 17 Jan 2023, Bloomberg reported that Mamoru Yanase, the deputy director-general of the Financial Services Agency’s Strategy Development and Management Bureau, said that the Crypto industry should be regulated perfectly and the regulation system should be more likely to the existing strict regulation systems on Institutions.
“If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions.”
The Japanese regulator dragged the FTX bankruptcy incident and said that it was not a problem with Crypto technology, instead it was the result of the loose regulation system in this sector. In short, we can say that Mamoru supported the Crypto & blockchain industry as an innovative industry & stressed imposing strict regulations so that investors could feel confident in this sector.
This government official also suggested other countries pressurise Crypto companies to strictly follow rules like preventing money laundering, strong governance, internal controls, auditing, and disclosure for crypto brokerages.
Mamoru confirmed that FTX Japan separated its fund from FTX global and will soon resume the withdrawal of crypto assets for the customers sometime in Feb 2023.
These things are showing that Japanese lawmakers & regulators did their best with the Crypto regulation system, otherwise, huge numbers of Japanese crypto investors would be victims of FTX fraud.