Japanese Financial Regulator Proposes Stricter Measures For P2P Crypto Transactions
To curb the occurrence of illicit cryptocurrency exchanges on Peer-to-Peer (P2P) markets, the Japanese Financial Services Agency (FSA) suggests taking new steps. The FSA announced on Wednesday that it has sent official requests to banks in Japan, pointing out that a significant portion of fraudulent transactions in the nation include cryptocurrency assets.
Working together with the National Police Agency (NPA), the FSA and NPA requested that banks improve user protection by implementing a number of measures. Two primary measures were suggested by the FSA, one being stronger monitoring of unlawful transfers to crypto exchange service providers.
Japan’s primary financial regulator has proposed implementing safeguards to shield users from “unlawful transfers” to cryptocurrency. #CryptoCommunity #Crypto #Nextincrypto #Bitcoin #Ethereum #Cryptonews #Blockchain #nft #Altcoin #DeFi #CryptoArt https://t.co/rQcZF9V2vg
— CoinCrypto (@ItsCoinCrypto) February 14, 2024
FSA Asks for Strengthen Monitoring
In relation to P2P markets, the second measure amplifies the disruption caused by requiring banks to suspend transactions when there is a disparity between the names of the sender and the account holder. This recommendation could significantly impact users of P2P platforms since different names are commonly used on the fiat and crypto ends.
Japanese banks’ decision to decline such transactions for individuals and corporations might adversely affect the overall performance of the P2P market. These strict measures against P2P crypto transactions proposed by the FSA are voluntary for financial institutions. The FSA has yet to release a statement addressing concerns regarding the potential impact of these new measures on the P2P market.
Strengthen monitoring of unlawful transfers to crypto-asset exchange service providers.
Japan’s Financial Services Agency (FSA)
Japan’s Crypto Market Braces for New Regulations
Japan’s tax agency announced that businesses would be exempted from paying taxes on their crypto holdings’ unrealized gains. This legislation awaits endorsement from both the House of Representatives and the House of Councilors.
Meanwhile, the FSA and NPA are focusing on enhancing user protection by tightening regulations on P2P transactions. The P2P market’s future in Japan remains uncertain as institutions weigh the potential benefits against the risks of implementing these stricter measures.
The FSA and NPA are taking a proactive stance by proposing new measures to secure the P2P market and protect users from potential risks. These actions underscore the importance of balancing innovation and crypto transaction security as the cryptocurrency market continues to advance.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
