India: Central Bank Report States Crypto Does Not Threaten Financial Stability

The Reserve Bank of India (RBI) has stated that cryptocurrencies currently pose no threat to financial stability in its recent financial report, published Dec. 28.

The document entitled “Report on Trend and Progress of Banking in India 2017-18” reads:

“[C]rypto-assets do not pose risks to global financial stability currently. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become more widely used or interconnected with the core of the regulated financial system.

RBI quoted a conclusion drawn from a recent report by the Financial Stability Board (FSB) — an international agency consisting of banking and financial institutions from different countries, including India. RBI itself is a member of the FSB, along with country’s Securities and Exchange Board and Ministry of Finance.

In its study “Crypto-asset markets: Potential channels for future financial stability implications,” published October, the FSB claimed that bankers see no significant danger in the existence of cryptocurrencies, as their total market cap by that time had barely reached 2 percent of the global value of gold. However, the board urged watchdogs to keep an eye on the digital coin markets, given their quick growth.

RBI reiterated this stance in its December report, stating that сryptocurrencies need “constant monitoring,” given their rapid expansion in recent years.

The legal framework for cryptocurrencies in India remains unclear, as RBI formally stopped all banks from dealing with cryptocurrencies in April. The de facto prohibition came into effect in June, while the Supreme Court’s hearings on the case — initiated by local crypto firms — were repeatedly postponed. At the same time, an Indian government panel is reportedly considering a complete ban on crypto.

Initially, RBI had considered launching its own central bank digital currency, dubbed “Laxmi.” However, in January, the bank gave up the idea of making a stablecoin tied to the rupee, stating that it’s too early to even think about it.

Yesterday, Jan. 3, the police of the Indian state of Jammu and Kashmir issued a statement, warning the public against investing in cryptocurrencies due to the “heightened risk” associated with them. The authorities also added that digital currencies are not regulated by the Indian government.

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Israel: Financial Services Firm GMT Joins RippleNet

Israel-based financial services firm GMT has joined Ripple’s bank and payment provider network, the company confirmed in a recent press release.

The result of a “long and precise process,” the move reportedly will help the company remain “at the forefront” of the local finance industry.

Ripple, which operates blockchain-based financial products using its XRP token, has partnered with multiple financial institutions and banks to expand its international reach in recent years.

“After a long and precise process GMT was chosen to be Ripple’s representative in Israel, by so joining Ripple, and its partners, in creating a global financial system, with high-end technology and values such as; [sic] transparency and affordable costs,” GMT’s statement reads.

In a private statement to Cointelegraph, a Ripple representative said that they can “confirm that [GMT is] a Ripple customer, similar to the 100+ customers on RippleNet.”

Ripple’s partners currently include MoneyGram, American Express and Japan’s SBI Group, among others.

Remittances have formed a central area of interest for new partners. This month, the United Arab Emirates’ UAE Exchange partnered with the blockchain firm to set up a payments corridor to Asia.

Earlier this month, enterprise blockchain consortium R3 chose XRP as the first cryptocurrency in its new universal payments decentralized application (DApp).

Ripple has meanwhile faced mixed publicity over its corporate structure, with criticism coming from the conflicting accounts about its relationship with XRP.

XRP is currently up almost 3 percent on the day to press time, trading at $0.33.

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Chinese Central Bank Governor Defines STOs as ‘Illegal Financial Activity in China’

The People’s Bank of China (PBoC), the country’s central bank, highlighted the illegality of Security Token Offerings (STOs) in the country, English-language local news outlet South China Morning Post (SCMP) reports Dec. 9.

A deputy governor of China’s central bank, Pan Gongsheng, reportedly told a summit in Beijing “that ‘illegal’ financing activities through STOs and ICOs [Initial Coin Offerings]  were still rampant in the mainland despite a nationwide clean-up of the cryptocurrency market last year.”

Gongsheng also said that if the government had not stepped in, the chaotic crypto market could have hurt the overall financial stability in China.

The central bank official pointed out that “the STO business that has surfaced recently is still essentially an illegal financial activity in China.” Gongsheng also reiterated the stance that cryptocurrencies are associated with crime:

“Virtual money has become an accomplice to all kinds of illegal and criminal activities.”

According to the article, Gongsheng noted that “most of the financing operations conducted through ICOs in China were suspected of being illegal fundraising, pyramid sales schemes and other financial fraud.”

The article also mentions that the chief of the Bureau of Financial Work, Huo Xuewen, warned against STOs about a week ago. He said:

“I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”

On the other hand, blockchain adoption — the tech behind most cryptocurrencies — has been relatively embraced in China. As Cointelegraph recently reported, a Chinese Internet Court has started using blockchain to protect the intellectual property of online writers.

The legal basis of this development can be assumed to be the Chinese Supreme Court’s ruling from September, which established that blockchain can legally authenticate evidence.

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European Central Bank Exec Calls Bitcoin the ‘Evil Spawn of the Financial Crisis'

Executive Board member of the European Central Bank (ECB) Benoit Coeure considers Bitcoin (BTC) to be the “evil spawn of the [2008] financial crisis,” Bloomberg reports Nov. 15.

Coeure reportedly made his acid remarks at the Bank for International Settlements (BIS) in Basel. The BIS’ general manager Augustín Carstens has likewise previously made a spate of crypto-skeptical remarks, notably characterizing Bitcoin as a “combination of a bubble, a Ponzi scheme and an environmental disaster.”

Explicitly recalling Carstens’ characterization, Coeure framed his criticisms of the ten year old innovation with a reference to the aftermath of the Lehman Brothers bankruptcy in fall 2008 – the tipping point for economic turmoil, global recession, and, subsequently, the controversial “too big to fail” rationale for state intervention:

“Few remember that Satoshi [Nakamoto, the inventor of Bitcoin] embedded the genesis block with a Times headline from January 2009 about U.K. banks’ bailout. In more ways than one, Bitcoin is the evil spawn of the financial crisis.”

After this historical overture, Coeure continued to address international monetary authorities’ present-day pursuit of cryptocurrency tokens and distributed ledger technology (DLT) initiatives. While acknowledging the widespread interest, he claimed that “there is broad agreement that a central bank digital currency, in whatever form, is unlikely to be issued within the next decade.”

The ECB official’s stance is at odds with remarks from International Monetary Fund (IMF) managing director Christine Lagarde just yesterday. Speaking at the the Singapore Fintech Festival Nov. 14, Lagarde urged the international community to “consider” endorsing central bank-issued digital currencies (CBDC), arguing they “could satisfy public policy goals,” specifically “financial inclusion.”

Coeure’s argument is also directly contrary to that of Stanley Yong, Chief Technical Officer (CTO) of IBM’s Blockchain for Financial Services, and a veteran of Singapore’s central bank, the Monetary Authority of Singapore.

Yong stated this week that CBDCs are “the only way” to mitigate the “kinds of risks that came about during the Lehman crisis of 2008,” and could specifically prevent a settlement system freeze – a systemic failure that affected financial systems across multiple countries during the Lehman fallout.

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Alibaba's Ant Financial to Launch Blockchain Backend-as-a-Service Platform

Ant Financial, the financial affiliate of Chinese e-commerce giant Alibaba, is launching a blockchain BaaS (Backend-as-a-Service) platform, local news outlet China Money Network reports September 21.

The announcement was reportedly made by Ant Financial vice president Jiang Guoefei at the Ant Technology Exploration Conference (ATEC) in Hangzhou yesterday. The new BaaS platform is being launched in tandem with an enterprise-focused “ant blockchain partner program” that will reportedly enable small- and medium-scale businesses to implement and innovate new blockchain solutions.

The announcement aligns with what Gueofei characterized as a move to “open up” Ant’s in-house technologies to the wider commercial sector:

“In the past two years, Ant Financial has been working on two aspects about blockchain. One is to improve the technology, and the other is to open it up and accelerate the commercialization of blockchain applications.”

As part of its impetus to commercialize the technology, Ant Financial trialed its very first blockchain remittances earlier this summer, using its newly-developed blockchain-based electronic wallet cross border remittance service. The trial demonstrated a transfer of funds between Ant Financial’s AliPayHK — the Hong Kong version of Ant’s popular mobile payment app Alipay — and Filipino payment app GCash.

Alibaba founder Jack Ma has signalled increasing involvement of AliPay in blockchain for several years, with Ant Financial most recently securing $14 billion in funding for the technology’s development this June.

Fresh data published late August revealed that Alibaba had sealed first place globally on a new list that ranked entities by the number of blockchain-related patents filed to date; the e-commerce conglomerate has filed a staggering 90 such patents, outflanking even IBM.

Nonetheless, Ma delivered a keynote lecture earlier this month in which he noted that blockchain is one of a host of advanced technologies that still need to prove they can help evolve society in a “greener and more inclusive” direction.

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Japan’s Financial Regulator Expands to Handle Influx of Crypto Exchange License Demand

Japan’s Financial Services Agency (FSA) plans to bolster its workforce by 12 personnel to better handle the growing influx of applications for crypto exchange licenses, Reuters Japan reported September 12.

At a crypto exchange study group meeting Wednesday, the FSA’s vice commissioner for policy coordination, Kiyotaka Sasaki, said that the agency is currently conducting its oversight of crypto exchanges with a team of around 30 people, whose work includes the review of license applications.

Yet Sasaki reportedly stressed that with over 160 firms currently awaiting review, the dedicated number of personnel is insufficient, saying the agency would need to add 12 further persons in 2019 to handle its “biggest problem” – the burgeoning number of license applications.

According to a document released after the meeting, the FSA has to date been reviewing sixteen cases, twelve of which withdrew their application at the FSA’s request and one of which has been rejected. Three, including Coincheck — which notoriously suffered the largest hack in crypto industry history this January — await a final decision.

The document further states that the agency plans to refine its risk profiling mechanisms as part of its “ongoing in-depth monitoring” of the exchange space, and to work increasingly closely with related ministries and agencies vis-a-vis non-registered firms, both domestic and overseas.

The document highlights concerns over insufficient anti-money laundering (AML) and terrorism financing prevention measures among exchanges, and points to other concerns regarding business models, risk management and compliance, internal audits, and corporate governance.

As previously reported, the FSA published the results of its on-site inspections of crypto exchange operators last month, finding that  the total digital assets of domestic exchanges have surged to 792.8 billion yen ($7.1 billion) — an over six-fold increase within the space of one year.

Meanwhile, as today’s document reiterates, most exchanges’ system personnel are fewer than 20 people, meaning that one employee on average was found to be managing digital assets worth 3.3 billion yen ($29.6 million).

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Japan’s Financial Watchdog Publishes Results of Its On-Site Crypto Exchange Inspections

Japan’s financial watchdog, the Financial Services Agency (FSA), has published the results of its on-site inspections of cryptocurrency exchange operators, Cointelegraph Japan reports August 10.

Based on its findings, the watchdog has decided to apply more rigorous oversight into new applications from exchanges hoping to receive an official operating license. Newly registered exchanges will be required to undergo on-site inspections at an early stage and the agency plans to closely examine the effectiveness of their business models.

According to the agency, there are currently “hundreds” of companies awaiting its review.

The FSA probe revealed that exchange operators’ maintenance of their internal control systems has failed to keep pace with the rapid growth of transaction volumes, which it partly attributed to the “renaissance” of the crypto markets in fall 2017.

According to the investigations, the total digital assets of domestic exchanges surged to 792.8 billion yen ($7.1 billion), an over six-fold increase within the space of one year. Meanwhile, most exchanges’ workforces are fewer than 20 people, meaning that one employee on average was found to be managing digital assets worth 3.3 billion yen ($29.7 million).

The comprehensive document identified a wide array of problems across exchanges’ business models, risk management and compliance, internal audits, and corporate governance. The agency further highlighted concerns over insufficient anti-money laundering (AML) measures among certain exchanges.

Local news platform Nikkei has reported that it is likely the new registration of exchange operators — which had virtually stopped in the wake of January’s $532 mln hack of crypto exchange Coincheck — will resume following the FSA’s interim publication.

The FSA has said that “substantial” ongoing review of registration procedures will be necessary, and that it will continue to give “priority to investor protection.”

In May, the FSA unrolled regulatory stipulations for registered exchanges, including tough restrictions on the trading of anonymity-oriented altcoins.

In July, the FSA announced it was considering changing the legal framework for the regulation of cryptocurrency exchanges, and the agency was also recently restructured in order improve its handling of fintech-related areas, including cryptocurrencies.

A self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA), formed in early March in order to develop and coordinate policies in conjunction with the FSA. Last month, JVCEA announced it would be requiring its members to place maximum limits on the volumes traded by their customers.

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Korea’s Financial Watchdog Calls for Stock Trading on a Blockchain


South Korea’s primary financial watchdog has backed the use of blockchain technology as the core infrastructure for trading stocks in the country.

First reported by domestic news publication Korea Joongang Daily, the Financial Supervisory Service (FSS) has advocated the use of blockchain for stock trading in a report focused on the subject released on Thursday. In a significant backing of the technology, the FSS called on the country’s regulatory agencies and firms to jointly work and develop an integrated blockchain system that negates the use of a conventional centralized ledger and system to track transaction.

Blockchain technology offers the promise of safer and tamper-proof transactions, the FSS report said, suggesting that conventional transaction systems with an overseer or centralized record-keeper is riddled with inefficiencies and vulnerable to hacking attacks.

The FSS also researched the use of blockchain technology among stock exchange transactions in several countries including Japan, the United States and Australia.

As reported by CCN, the Australian Securities Exchange (ASX) – Australia’s largest stock exchange – will become the world’s first major exchange operator to implement blockchain technology for its clearing and settlement system with a planned rollout in 2020. In doing so, the ASX is replacing its existing post-trade system that has been operational for the last 25 years.

In the United States, Nasdaq – the world’s second-largest stock exchange by market capitalization – has already launched Linq, a blockchain platform that enables private companies to trade their shares on the platform. The Japan Exchange Group (JPX), Asia’s largest stock exchange operator, has also established a consortium to specifically research blockchain applications in late 2016 and has since received a regulatory green-light from Japan’s financial regulator to use the decentralized technology as the code driver for its trading infrastructure.

Urging regulators, authorities and the financial industry to come together in developing a blockchain stock trading platform, an excerpt from the FSS report added:

There should be no barrier between public institutions and private companies in developing a blockchain system.

The FSS report went on to add that Korea’s embrace of blockchain is still in a preliminary stage, despite the notable successes of major trails including a 7-month pilot of imports and exports from Korean shipping ports tapping a blockchain developed by Samsung SDS, the IT subsidiary of electronics giant Samsung.

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South Korea's Financial Watchdog Calls for Integrated Blockchain System for Stock Trading

South Korea’s Financial Supervisory Service (FSS) has advised local regulatory agencies and companies to work towards developing an integrated blockchain system for stock transactions, according to an official report published August 2.

The FSS undertook a detailed analysis of international stock exchange operators’ use of blockchain technology to date, focusing on existing initiatives in the U.S., Japan, UK and Australia, among others.

The report concluded that a tamper-proof blockchain-based system would increase the efficiency, integrity and security of tracking and storing transactions. The report added that existing conventional systems that use a centralized ledger are both less efficient and more vulnerable to hacks.

The FSS report specifically studied U.S. exchange Nasdaq’s use of blockchain for record keeping for its private market, using a system called Nasdaq Linq.

It also looked into the London Stock Exchange Group’s blockchain-powered platform for the issuance of private shares, as well as explorations into using blockchain for capital market infrastructure by a Japanese consortium comprised of 36 financial companies.

The most ambitious case study considered by the watchdog was the Australian Securities Exchange’s plans to eventually wholly replace its existing clearing and settlement system with a permissioned, distributed ledger-based alternative.

The report considered that blockchain applications in Korea are still at a relatively early stage, taking note of plans by the Korea Exchange’s KRX Start-up Market to implement the technology for transaction settling transactions of unlisted companies, as well as a blockchain trial project underway by the state-run Korea Securities Depository.

On the basis of its findings, the FSS further pledged to “establish long-term planning and continue to promote proofs-of-concept and pilot projects on a project-by-project basis, [as well as to] continue to study the [application of] blockchain […] in capital market[s].”

In May, the newly appointed governor of the FSS, Yoon Suk-heun, said that he sees “some positive aspects” to cryptocurrencies, saying that better crypto-specific regulation “would produce” the secure financial system that would make them more accessible.

In July, Cointelegraph reported that Korean regulators had pledged to introduce new legislation that would be conducive to blockchain investment, the same month as three Korean ministries were said to be working to produce the final draft of a comprehensive blockchain industry classification scheme for the country.

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Korea's Financial Regulator Wants to Use the Blockchain for Stock Trading

South Korea’s financial watchdog is advocating for a blockchain-based stock trading system.

The Financial Supervisory Service’s (FSS) appeal was part of a new study published by the agency on Thursday, which was first reported on by Korea JoongAng Daily. The study reportedly encourages South Korean regulatory agencies and companies to collaborate on the development of the proposed system, and also examines the use of the blockchain by stock operators around the globe.

The usage of blockchain in stock trading is already well established, with the Australian Securities Exchange (ASX) first trialing distributed ledger tech for its settlement and clearing system, called CHESS, in 2016. ASX said in April that it expects to roll out the new system in 2020.

Likewise, U.S. stock market Nasdaq unveiled a blockchain-based private securities platform in 2017, and the London Stock Exchange experimented with using the blockchain to replace paper trading certificates later that year. The Japan Exchange Group (JPX) also founded a consortium to explore blockchain applications to capital markets infrastructure in 2017.

The study reportedly noted that the exploration of blockchain use cases in Korea has only recently started, and that cooperation between private and public companies would be integral to the success of any future system.

“There should be no barrier between public institutions and private companies in developing a blockchain system,” the FSS was quoted as saying.

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Ex-JPMorgan Exec: Blockchain May Be Key to Avoiding Next Global Financial Crisis

The former vice president of North American investment banking at JPMorgan Chase has said that blockchain “may be the key to avoiding the next global financial crisis,” the China Economic Times reports today, July 23.

Pang Huadong, currently an honorary academic advisor of the Asian Blockchain Institute, said that his experience at JPMorgan during the peak of the 2008 financial crash led him to think that blockchain could be the pivotal technology for establishing transparency and trust in the global economic system:

“[When I began to work at JPMorgan in 2007,] 13 people managed [the bank’s] $40+ billion [assets]…. when the 2008 financial crisis was at its worst, [the] average daily loss was $300 million. It is only gradually that I understood that blockchain technology may be the key to avoiding the next global financial crisis.”

Huadong added that while the technology is still “at a very early stage,” its development prospects are “limitless.” He isolated blockchain’s cornerstone innovation –– that of establishing disintermediated and transparent systems –– as having the potential to radically reduce global financial risks and “establish trust mechanisms at the lowest cost.”

While the Chinese government’s policy remains tough on decentralized cryptocurrencies, blockchain has been gaining increasing traction with political, academic, and financial sector leaders –– with even the country’s president Xi Jinping openly praising its potential this spring.

Just last week, the official newspaper of China’s Ministry of Science and Technology reported that the country would lead an international research group on the standardization of Internet of Things (IoT) and blockchain technology.  

On July 16, the deputy director of China’s IT Ministry urged the country to “unite” forces to foster blockchain as a “core” technology for the new digital economy, and advocated easing institutional constraints in order to optimize the environment for its integration.

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Korea’s Financial Regulator Will Establish a Positive Cryptocurrency Policy Body


South Korea’s primary financial regulator will establish a new policy-making body centered on nurturing Korea’s fintech industry with a specific focus on cryptocurrency and blockchain technology.

The Financial Services Commission (FSC) is set to establish a new policymaking body dubbed the Financial Innovation Bureau to proactively help the fintech industry while formulating policies for the cryptocurrency sector, the Korea Times reports.

The decision to establish the new body was taken during a cabinet meeting between the FSC and the Ministry of the Interior and Safety this week amid an organizational reshuffle to better safeguard investors while nurturing financial innovation bought on by new technologies like blockchain and cryptocurrency.

An FSC official told the publication:

“The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies.”

While the new body will see a temporary life-span of two years, it will markedly cover South Korea’s existing cryptocurrency and blockchain ecosystem, the FSB confirmed.

Pointedly, the new body will look to adopt the financial regulator’s recent positive outlook toward the sector wherein domestic cryptocurrency exchanges could soon be faced with guidelines similar to commercial financial institutions as lawmakers seek to fast-track bills regulating the sector.

Despite a domestic ICO ban – taking a cue from China – South Korea is also looking at loosening previous restrictions in sticking with the wider G20 directive of uniform global regulations among member bodies. The Korea Times report adds that the regulator’s stance is ‘believed to side with the Financial Stability Board’s recent report that claimed crypto assets ‘do not pose material risk to global financial stability.’”

As reported earlier this week, the Financial Stability Board (FSB) – an international G20 watchdog and body to coordinate regulation for member nations – published its report on cryptocurrencies. FSB chairman and Bank of England governor Mark Carney called for ‘vigilant monitoring in light of the speed of market developments’ of the sector.

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Financial Exchange Patent Explores Tamper-Proof Blockchain Bidding

A state-backed financial asset exchange in China’s Chongqing city is turning to blockchain to make online auctions tamper-proof and transparent.

According to a patent application filed in December and revealed on Friday by the China State Intellectual Property Office, the Chongqing Financial Asset Exchange (CQFAE) is exploring how to create a system that allows multiple parties to bid for a financial asset over a distributed network.

The document explains that the envisioned network would be run by invited validator nodes that are separate from the companies who participate in bidding for certain assets, such as letters of credit or corporate bonds.

When companies submit their bid to the network, the validator nodes authentic the data and then broadcast the new price for the next level of the auction, which is calculated based on various criteria encoded to smart contracts on the blockchain.

The asset exchange said the effort is necessary because the existing centralized database system is vulnerable to malicious alteration of data, either by bidding parties or even auction organizers.

It stated in the patent filing:

“The centralized online platform could make the bidding process become unfair and less transparent as the bidding parties are also unable to supervise the process. As such, the authenticity and security of the bidding data can’t be guaranteed.”

Founded in 2011 as an authorized exchange by the municipal government of Chongqing, the CQFAE functions as an intermediary between small businesses looking to raise capital and lenders such as investment firms and traditional banks. It further facilitates the trading of corporate loans and letters of credit.

While it’s so far unclear if the firm plans a blockchain product based on the patent application, it notably comes a month after the Chongqing city government revealed its plan to create a “blockchain digital asset exchange.”

As previously reported by CoinDesk, the news initially caused confusion in the Chinese cryptocurrency community, which speculated that it could mean a government-backed cryptocurrency trading platform.

A government officially reportedly clarified later that the platform is focused on facilitating exchanges of “non-standard assets” such as credit loans and letter of credit,

CQFAE Patent by CoinDesk on Scribd

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Japan Revamps Financial Regulatory Agency to Address Issues in FinTech, Cryptocurrencies

Japan has overhauled its financial regulator, the Financial Services Agency (FSA), in order to better deal with fintech-related fields, including cryptocurrencies, news outlet Nikkei Asian Review reported July 17. Changes were made to various bureaus in order to make the organization more suited to address new problems and challenges in the financial sector.

Starting today, the newly created Strategy Development and Management Bureau, which replaced the Inspection Bureau, will reportedly develop a financial strategy policy and handle issues addressing the digital currencies market, fintech, and money laundering. Additionally, the bureau will be responsible for administrative duties and inspection of financial institutions.

The Policy and Markets Bureau will succeed the Planning and Coordination Bureau, and is tasked with developing a legal framework that addresses the rapid growth of the fintech sector. The Supervision Bureau remained unchanged. 

The FSA has initiated enforcement actions against several crypto exchanges this year. In March, the agency sent “punishment notices” to seven crypto exchanges and temporarily halted the activities of two more after a round of inspections. Last month, the FSA issued business improvement notices to five registered exchanges, alleging that the exchanges lacked proper internal management systems, including anti-money laundering measures.

Earlier this month, the FSA announced it was considering changing the legal framework for regulation of cryptocurrency exchanges. The FSA was planning to regulate crypto exchanges via the Financial Instruments and Exchange Act (FIEA), instead of its legal foundation, the Payment Services Act. This reportedly means that exchanges will have stronger customer protections. The FIEA obliges securities companies to manage customer funds and securities, such as stocks, separately from corporate assets.

In June, Japan’s Minister of Finance Senator Fujimaki asked Deputy Prime Minister Taro Aso whether crypto transactions should be taxed via a “separate settlement taxation,” rather than their current classification as “miscellaneous income.” Aso said the prospect was “doubtful” citing concern over the public’s reaction due to “tax fairness.” Changing the tax scheme would bring the current tax rate for crypto transactions from a maximum of 55 percent to a 20 percent flat tax similar to stocks or forex trades.

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