Starting next month, Japan’s Financial Services Agency (FSA) will be watching local cryptocurrency exchange more closely, industry website CoinDesk has informed, citing a recent report by The Japan Times.
The Japanese news outlet reported yesterday that the FSA will monitor whether exchanges operating in the country comply with the revised payment services law, which was passed in April. The watchdog has reportedly set up a 30-strong surveillance team to monitor the exchanges.
According to the report, the surveillance is aimed at both regulating the trading platforms and ensuring the healthy growth of the local digital currency market.
“We pursue both market fostering and regulation enforcement,” The Japan Times quoted an unnamed FSA executive, as saying. “We aim for sound market development.”
The law in question established anti-money laundering and know-your-customer rules for the exchanges, as well as security standards, designed to protect the platforms from cyberattacks. All exchanges operating in Japan, of which there are over 20, according to reports, have until the end of the month to confirm that they are compliant with the new law.
Japan has witnessed a number of cryptocurrency-related fraud cases in the past. The most notable of those happened in 2014, when Mt. Gox, the largest Bitcoin exchange at the time, collapsed after 850,000 Bitcoins were stolen by hackers. The Mt. Gox debacle was one of the key factors behind Japan’s decision to regulate the sector.
In today’s trading, the Bitcoin price (BTC/USD) stood at $3,896.72, as of 16:39 BST. The cryptocurrency has gained nearly 5% over the past 24 hours.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.