Talks about legalizing Bitcoin in Japan have been promising results for nearly a year now but with the future of Bitcoin exchanges at stake, a formal law has been passed and will be in effect tomorrow, legalizing Bitcoin as a tender in the country. As we have explored before, the previous draft did include some debilitating clauses which would have stifled growth of exchanges, but the majority of points set out in the document aim to protect the consumer’s interest and rights by enforcing transparent practices on the side of exchanges.
There have been some additions to the draft as the bill also outlined how employees of exchanges must be trained regularly by exchanges and audit programs to be carried out annually as an added layer of fraud prevention. Money laundering concerns were at the forefront of recent regulation but the official regulations make clear the boundaries for exchanges to operate legally in Japan.
To conclude, the legitimacy of the Bitcoin is predicted to increase adoption rates as government recognition will act as a safety net for many after the collapse of major Bitcoin exchanges Such as MtGox left the coins reputation in Japan in ruins. Increased regulation and rules will mean exchanges do lose their independence to a degree but it is hoped the new laws will aid development of a sustainable and legal infrastructure for the cryptocurrency. While more is set to come regarding cryptocurrencies, in the meantime, focus will be shifted to restricting current laws such as the Banking act and Financial Instruments And Exchange act which will also will have to incorporate the impact of cryptocurrencies.
Source: Financial Services Authority Japan http://www.fsa.go.jp/news/28/ginkou/20170324-1.html#別紙１
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