Story Highlights
- According to Teng, Japan has 11M cryptocurrency accounts in 2024.
- The FSA imposes tight requirements for crypto exchanges and AML compliance.
- New regulations seek to improve asset protection and stablecoin policies.
Binance CEO Richard Teng appreciated Japan’s open and transparent style of regulating cryptocurrencies in his speech at the Global Financial Technology Network Forum in Japan. He claimed that the country had 11 million cryptocurrency accounts last year and emphasized that the regulations must be established to provide long-term stability and security in the market for cryptocurrencies.
Japan’s Financial Services Agency (FSA) regulates Japan’s crypto regulations, enforcing PSA and FIEA regulations. Investor protection, security, and transparency-oriented law is enforced by self-regulatory organizations such as the Japan Virtual Currency Exchange Association (JVCEA). The FSA warned exchanges such as Bybit, KuCoin, Bitget, Bitcastle, and MEXC Global for the lack of licenses.
Japan’s Crypto Rules Receive Thumbs-Up from Binance CEO
The nation is also proceeding with fresh regulatory changes for crypto assets and stablecoins. Yufu Shigeyuki, Director of Planning and Market Bureau at the FSA, tabled recommendations based on the discussion of a recent Financial System Council meeting. The reforms include a domestic asset holding order to enhance investor protections so that crypto exchanges have distinct asset separation.
Apart from this, the proposal aims to separate crypto broking companies from other business undertakings and provide stablecoin issuers greater freedom in managing trust-supported assets. Future amendments to the Trust Business Act and Payment Services Act will further consolidate such improvements.
Teng’s quote of the day is a witness to Binance’s aggressive pursuit of regulation all over the world. His admiration for how Japan has accomplished it is a sign that the country may serve as an inspiration to others who desire to achieve the ideal balance between innovation and protection of investors. As long as Japan continues to develop its crypto regulations, it is the most important participant in the domain of global regulation.
Japan’s regulation has made it a model example for innovation and investor protection in the cryptocurrency industry. With increasingly more individuals adopting cryptocurrency, Teng believes other countries could use Japan’s model as a template to create clear and functional regulations.
