Monex CEO calls for cryptocurrency regulation

The CEO of Monex Group, a Japanese online brokerage, thinks Japan’s cryptocurrency exchanges should be regulated more strictly.

In an interview with Reuters, Oki Matsumoto said that Japan’s exchanges are ‘close to a bank’ as they do matching and custodial service. He added that it’s ‘common sense that regulations will get stricter.’

His statements come shortly after Monex was linked with the purchase of Coincheck, a Japanese cryptocurrency exchange that lost around $530m worth of customers’ XEM (the native token of the NEM network) in a breach earlier in the year.

Monex has confirmed a deal is in place to acquire cryptocurrency exchange Coincheck, with a report from Nikkei Asian Review indicating that Monex has aired plans to obtain regulatory approval for the purchase, with the aim of a June relaunch.

In an announcement the company said: “The cryptocurrency exchange business plays a core part in a vision of ‘Monex new beginning’. Therefore, the Company has resolved on 100% share acquisition of Coincheck who has been a pioneer among cryptocurrency exchanges.”

Monex added that Coincheck is in the process of improving its governance and internal controls after receiving an order from the Kanto Local Finance Bureau following the January breach.

Earlier this year, Japan was reportedly set to urge its G20 counterparts to bolster its efforts to prevent cryptocurrencies from being used for money laundering.

Policymakers in Japan are rumored to be concerned that some countries have ‘less stringent rules’ when it comes to preventing money laundering via digital tokens according to CNBC, which cited a government official with direct knowledge of the matter.

Reports also recently suggested that a group of Japanese cryptocurrency exchanges are uniting to create a self-regulating body. The move, which is yet to officially confirmed, came shortly after seven cryptocurrency companies in the UK formed a cryptocurrency trade body, bringing the first self-regulation to the industry.

Copyright © 2018 RegTech Analyst

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