Japanese regulators discuss formulating domestic Bitcoin regulatory policy

Author: GTong Image source: Dazhi

In the wake of the collapse of bitcoin exchange Mt Gox, the Japanese government is stepping up its efforts to regulate bitcoin trading activities more actively.

Earlier on the 18th, the Nikkei reported that members of Japan's Financial Services Center - the country's top financial regulator - are drafting a regulatory outline for bitcoin-related companies. The Japanese government has previously hinted that it will strengthen its supervision of bitcoin companies in response to the collapse of Mt Gox. The company's CEO Mark Karpeles will face multiple charges this year, which has brought us to the collapse of Japanese companies in 2014. "Financial Services Center regulators also said at a meeting on Monday that Japan needs a more comprehensive regulatory mechanism for virtual currencies, including strengthening the identity authentication system and anti-money laundering system."

The Financial System Commission of Japan reportedly discussed registering bitcoin transactions and taking measures to protect consumers. The report also mentioned that participants expressed an openness to working with the industry and "invited operators of virtual currency exchange centers to share their knowledge and regulatory ideas."

Reportedly, talk of “exploring the concept of a Bitcoin repository more” emerged earlier this year as the Japanese government decided to tighten regulation of Bitcoin activities. Finance Minister Taro Aso said the government needed to “conduct research” to determine the next direction.