Japan’s Government To Inspect 15 Crypto Exchanges

The inspections will take place at 15 unlicensed cryptocurrency exchanges in light of a recent major hack  
16 February 2018   277

According to the Japan Times, Japan’s financial services minister Taro Aso said that on-site inspections will take place at the crypto exchanges that have filed for licenses but have not yet been approved.

This move comes after the last month hack at Tokyo-based digital currency exchange Coincheck.

During a news conference, Taro Aso stated that the inspections will focus on the exchanges computer system safety measures and how they manage customer assets. He also informed that 5 out 15 of exchanges are already informed of the upcoming inspections.

Following the Coincheck hack, the Financial Services Agency (FSA) ordered all licensed and unlicensed exchanges to report on their safety measures. After studying reports, FSA stated that it is necessary to inspect 15 unlicensed cryptocurrency exchanges.

A registration system for digital currency exchanges was introduced by the government in April 2017. It is worth noting that cryptocurrency exchanges that were in operation before the revised law went into effect, but have yet to be registered, are provisionally allowed to conduct their business during the registration process. Prior to Coincheck’s hack, the exchange was also permitted to operate.

Cryptocurrency to be Regulated in France

French Ministry of the Economy and Finances creates working group to regulate cryptocurrency
22 March 2018   117

Bruno Le Maire, the French Minister of the Economy, announced the government initiative to constitute the instructions and regulations towards cryptocurrency. The group is also aimed to decrease the influence of Bitcoin and altcoins to the formal system of economy with the help of required concept. These measures would help French government to prevent tax avoidance and some other criminal activities (such as money laundering).

In an op-ed that was published in French media this week the Minister of the Economy Bruno Le Maire made a promise not to miss the blockchain revolution. He refined the reasons of the French authorities`decision to regulate the technology. According to his point of view, it is impossible for any consumer or entrepreneur to carry out a transaction, invest, develop in business being in a regulatory vacuum. The Minister also put this position on the top among the rest questions to be discussed at G20 Summit in Buenos Aires. Bruno Le Maire is sure that the role of France is to be a driving force in “building the world of tomorrow”.

The Minister is going to present his case at the G20 Summit in 2018 in Argentina. He hopes that the framework can help in decreasing illegal activity in cryptocurrencies. Le Maire also explained that the sphere of digital funds is extremely attractive for criminals.

The leader of the working group is Deputy Governor of the Central Bank of France Jean-Pierre Landau. The French Central Bank supports the Government and hopes there would be no negative impact and consequences for the traditional economy system.

The key object of cryptocurrency regulation is to limit various negative factors in the financial sphere caused by digital money, such as the price volatility. Le Maire claims that at the same time the regulation of the cryptocurrency can support the development of the technology and can even lead to the economic growth. As blockchain can destroy not only traditional daily practices in banking and financial markets, but also patents and certified acts, the French Minister of Economy urges that the working group should foresee all these changes and become “actors of this revolution”, instead of simple viewers.