Junichi Nakajima who is Japan’s newly appointed Financial Services Agency Commissioner believes that careful deliberation is essential before making crypto assets more accessible to the general public.
Junichi Nakajima, the new commissioner of Japan’s Financial Services Agency (FSA), believes the country should think twice before making Bitcoin (BTC) and other cryptocurrencies more widely available.
In an interview with Bloomberg, Nakajima feels that crypto-assets like Bitcoin have the potential to assist the general population as a rapid and inexpensive means to move money. The majority of crypto assets, on the other hand, are being used for speculation and investing.
As a result, the Japanese authority believes that careful deliberation is essential before making crypto assets more accessible to the general public.
The significant volatility of crypto markets due to the lack of underlying assets, according to Nakajima, is one of the main reasons why the Japanese regulator has refused to authorize crypto investment trusts.
Following the historic cyber attempt on Tokyo-based crypto exchange Coincheck, which led to the theft of 523 million NEM coins worth around $534 million, Japan is recognized for stepping up its regulatory efforts.
Since then, Nakajima concedes, the country has become a challenging market for registered crypto exchanges to do business in.
Customers are well protected and Anti-Money Laundering standards are met under the present regulatory framework for crypto exchanges. However, most of the registered crypto exchanges’ business situations are “very bleak,” according to Nakajima.
To regulate digital currencies, the Japanese government is striving for worldwide cooperation. The Japanese Ministry of Finance is apparently looking to expand its workforce in this regard. Last month, the FSA created a new team to monitor the broader crypto markets and focus on decentralized finance.
Major cryptocurrency exchanges such as Binance and Bybit are not among the 31 crypto exchanges registered in Japan.
In May, the FSA issued a formal warning letter to Bybit and Binance, accusing them of operating cryptocurrency exchanges in the country without being registered.