Crypto Regulation Could Get Tighter In The Coming Months And Japan Might Lead The Charge

Regulatory agencies have started circling the cryptocurrency market, and it is only a matter of time before tougher regulations are put in place to curb certain activities.

Japan’s FSA Wants To Impose Stricter Regulations On Cryptocurrencies

The Japanese Financial Services Agency (FSA) is seeking to establish stricter regulations on cryptocurrencies. The regulatory agency said it wants to provide further security to cryptocurrency investors in Japan.

The FSA has been one of the most active financial regulators in the cryptocurrency space. The regulatory agency dedicated an entire section of its operations to cryptocurrencies and launched a panel of experts to help with crypto regulations.

Local media outlet Jiji Press reported that the FSA wants to replace and implement the new cryptocurrency regulations by next year. The regulatory agency intends for the new regulations to bring stability to the Japanese cryptocurrency market while also ensuring that it doesn’t impede the developments and innovations in the sector.

The Japanese financial regulator had to implement tighter regulations on cryptocurrencies following a series of hacks in recent years that led to investors losing billions of dollars. Liquid, a Japanese cryptocurrency exchange, was recently hacked, with the attacker making away with $90 million.

More Regulators Are Looking At The Crypto Market

The cryptocurrency market is now worth over $2 trillion, and this has attracted the attention of regulators in various parts of the world. The regulatory agencies such as the United States SEC, the UK’s FCA, Australia’s ASIC and others have already started discussing broader regulations of the cryptocurrency market.

Cryptocurrency exchanges are increasingly under pressure from regulators to implement KYC and AML policies. Binance, the world’s leading crypto exchange, has been warned in several countries for operating without a license.

These regulatory changes are expected to affect how the cryptocurrency market operates moving forward. The cryptocurrency market is recovering from the slump it suffered over the past three months.

Bitcoin is trading just above the $48k region, down by 3.3% over the past 24 hours. The decline in Bitcoin’s price comes after the cryptocurrency surpassed the $50k mark two days ago.