Financial regulators in Japan are pushing global regulators to strictly-regulate the space of crypto as they do with the traditional banking system, urging for tougher rules to be put in place.

As said by Japan’s deputy director-general of the Financial Services Agency’s Strategy Development and Management Bureau, Mamoru Yanase, “If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions.”

The FTX calamity in November has shaken up the industry, and has incentivized nations and their financial watchdogs to look further into crypto exchanges and their activity in order to limit the occurrence of any illicit or suspicious activity surrounding crypto transactions.

Yanase further noted that the crypto technology itself was not the reason behind the FTX disaster, but instead was caused by the “loose governance, lax internal controls and the absence of regulation and supervision.”

Sources:

https://www.japantimes.co.jp/news/2023/01/17/business/financial-markets/tougher-crypto-regulation/

https://www.bloomberg.com/news/articles/2023-01-16/japan-pushes-global-counterparts-to-regulate-crypto-like-banks