Japan Will Regulate Crypto Schemes
Financial Services Agency (FSA) of Japan is planning to bring unregistered cryptocurrency investment schemes under regulations.
The agency hasn’t disclosed actual data of the changes yet.
Last month, The FSA released a draft report in order to address a new framework for cryptocurrencies and Initial Coin Offerings (ICOs).
According to a report from Sankei Shimbun, the Agency wants to close a legal loophole. The grey area lets unregistered investment firms collect funds in cryptocurrencies, not in cash.
The Financial Services Agency wants to bring that schemes under the country’s Financial Instruments and Exchange Act. As of today, this act forbids only collecting investments in fiat currencies, but it doesn’t clarify the stance on cryptocurrencies.
The issue has been brought out in the open because of rising incidences of crypto pyramid schemes in Japan. For instance, back in November, eight men were arrested by Tokyo police. According to the allegations, these men raan such schemes and have have collected almost $69 million worth in crypto.
The FSA does much to regulate all aspects of cryptocurrency industry. The ‘unregistered cryptocurrency investment schemes’ case is just another part of that. A few months ago, the Agency gave the Japan crypto industry self-regulatory status.
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