The Japanese Financial Services Agency is reportedly planning to tighten the regulation around cryptocurrencies investing.
Following the $530m Coincheck hack that took place in January, the regulator said it plans to increase the legislation regarding cryptos according to a new report form the Japan Times.
Its proposed changes to existing laws would bring cryptocurrency exchanges under the legal jurisdiction of the Financial Instruments and Exchange Act (FIEA).
As a result, exchanges would be mandated to comply with laws that are currently only applicable to stock brokerages and financial securities firms.
The changes would also legally classify cryptocurrencies as ‘financial products,’ easing their entry into more traditional financial markets.
A recent report by FinTech Global found that blockchain & cryptocurrency funding is on track to surpass last year’s record despite crypto market uncertainty. Q1 2018 saw $820.1m invested across 50 deals in the third strongest funding quarter to date. The $820.1m invested in Q1 equates to 29.2% of last year’s total, meaning funding is on track to beat record levels.
With more and more capital being pumped in, regulators around the world are struggling to get to grips with regulation. Some countries are taking a more -harsh approach and banning them outright, while others are looking to foster innovation through the correct legislation.
Last year, South Korea banned initial coin offerings to protect investors from fraud. However lawmakers in country were recently tipped to be looking to submit draft bills to legislate regulations for burgeoning sector.
The EU commission also recently release plans for regulation, with proposals to amend Article 2 of the 4AMLD to add to the list of obliged entities virtual currency exchange platforms as well as custodian wallet providers.
The Securities and Exchange Commission in the US has warned investors about dangers of the ICO and recently made it clear that it won’t be bending the rules for cryptocurrency when it comes to defining what is or what isn’t a security.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
