Monetary regulatory authorities in the Japanese region have recommended that worldwide regulatory authorities manage digital currencies exactly as they do traditional banks, implying tougher regulations for the space.
As noted by the assistant managing director of the Financial Service Agency Strategy Development and Management Bureau, Mamoru Yanase, digital currency requires regulation.
If you intend to enforce cogent regulations, you may need to do it exactly as you manage and supervise conventional financial institutions, he noted, as published by Bloomberg in the early hours of Tuesday.
The statement from the Japanese supervisory player follows the recently experienced fall of FTX in the 11th month of 2022, which caused panic and attention that the industry requires urgent supervision.
Contrary to many of his fellow regulatory peers in the United States, Yanase agreed that the challenges do not lie in digital currencies. According to him, the recent unrest did not come from digital currency technology, but from “loose governance, lax internal controls and the absence of regulation and supervision.”
Yanase noted that regulatory authorities in the United States and European regions had been advised to carry on with the exact implementation strategy for digital currency as they do for other traditional financial institutions like banks and brokerage firms.
So far, the suggestion is being worked on through the Financial Stability Board, a worldwide association to supervise the cryptocurrency space.