If a report from Nikkei Asian Review is to be believed, bitcoin exchanges operating in Japan may soon have to get registered with the government, be open to external audits, and put in place adequate consumer protection measures.
Japan has been dilly-dallying with its stance on cryptocurrencies such as bitcoin, but the first draft of cryptocurrency regulations may bring the much-needed clarity into the picture. We had previously reported that Japan is working towards a regulatory bill for bitcoin by early 2016.
A Financial Services Agency (FSA) panel is slated to discuss the regulations proposals from Thursday. According to the draft, digital currency businesses and exchanges would have to implement AML/KYC laws, maintain and store transaction records, and report suspicious transactions. The nature of suspicious transactions hasn’t been made clear; it could be anything. A case of panic selling or a promoter selling his stake in the bitcoin company may seem suspicious to the regulator.
After the massive fall of the then world’s biggest bitcoin exchange Mt. Gox, in which investors lost huge amounts of money, some even their life savings, the Japanese government has been mulling putting such business operations under the scanner. But businesses have been conducting until now without