Japanese Bitcoin exchanges may face a series of strict operating conditions

Japan’s financial regulator is reportedly close to establishing a systematic registration and supervision system to oversee domestic digital currency exchanges.

Citing "people familiar with the matter," The Japan Times reported that a working group under the Financial Services Agency's Financial System Committee is refining the final version of the draft, which once completed will be submitted to the country's legislature, the Diet, next year.

According to the Times, the draft law sets out a series of capital and audit requirements for domestic digital currency exchanges, including know-your-customer (KYC) and anti-money laundering (AML) principles.

It is reported that relevant Japanese agencies will hold another meeting on Thursday to discuss this proposal.

The Times reported:

“The draft proposes to set a series of financial conditions that virtual currency trading operators must meet, such as a certain amount of operating funds and requiring exchanges to manage their own corporate assets separately from customer assets. In addition, it calls for the introduction of mandatory measures that exchanges’ asset management and financial statements must be strictly externally inspected by certified public accountants or audit firms.”

A few weeks ago, there were reports that a Japanese working group had held a meeting to discuss how to regulate exchanges.

Japanese government officials have called for stricter regulation of digital currency exchanges following the collapse of Tokyo-based bitcoin exchange Mt. Gox and the jailing of its chief executive, Mark Kalpus, on suspicion of fraud.

Original text: http://www.coindesk.com/japan-draft-regulation-bitcoin-exchanges/
By Stan Higgins
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/japan-draft-regulation)