Citing unnamed but informed sources, Japanese publications are reporting that a working group under the Financial System Council have complied a draft of Japan’s first ever cryptocurrency regulations.
Under the new proposed rules, bitcoin exchanges and those dealing with virtual currencies must register with the government to fall under a regulatory framework.
The rules, as reported by The Japan Times, are drafted by a working group under the Financial System Council (FSA). The proposals and discussion for the new rules began yesterday, while the bills required to enact the new rules and measures are expected to be introduced during the Japan’s Parliament session, the Diet, next year.
Ever since the collapse of Mt Gox, what was once the world’s largest bitcoin exchange, there have been increasing calls for protecting virtual currency users by regulating alternative currency exchanges.
Some of the speculated regulations and considerations include:
- Bringing registered cryptocurrency exchanges under Japan’s anti-money-laundering laws.
- Mandating exchange operators meet certain pre-set financial conditions such as having a minimum amount of capital.
- Another stipulation may include requiring operators manage customer assets separately from corporate assets. This would also help with clarity in the case of bankruptcy.
- Mandatory external checks from certified public accountants