Japan’s financial regulator, the Financial Services Agency (FSA), has set up a new sector specifically to oversee digital currency regulation. And, the nodal Ministry of Finance is mulling over adding more staff to its ranks, according to a report by Reuters.
The island nation was the first country in the world to put a law in place that defined ‘crypto asset’ as a legal term. It was also the first to require companies to register as ‘crypto asset exchange service providers’ in order to operate a crypto exchange within the country.
But, it has since stagnated. The country has been reasonably open to crypto exchanges, but a series of scams, heists, and irregularities have nudged the government towards global policies.
Last month, the G7 — of which Japan is a participant — issued a notice covering central bank digital currencies (CBDCs) and global stablecoins last month. In October last year, the G20 — of which Japan is a member as well— filed a working paper outlining how stablecoins should be regulated.