- The Japanese FSA Deputy Director even mentioned FTX’s failure.
- Crypto exchanges should be regulated like traditional financial institutions as per Yanase.
Financial Services Agency (FSA) of Japan Deputy Director-General Mamoru Yanase has called for more worldwide controls on the cryptocurrency sector. According to him, cryptocurrency exchanges need to be regulated like traditional financial institutions.
Moreover, Yanase argues that authorities may avoid another crypto platform collapse by treating them like banks. The Japanese FSA Deputy Director mentioned FTX’s failure, claiming that the industry as a whole has been destroyed by the bankruptcy of the company and the allegations of fraud against Sam Bankman-Fried.
Latest Scandal Isn’t Crypto Technology Itself
However, he applauded the measures of Japan’s monetary watchdogs that may let local FTX customers to withdraw cash by mid-February.
Furthermore, Yanase stated that global authorities should implement stricter anti-money laundering legislation, apply stronger governance to the cryptocurrency business, and conduct internal audits and controls to better protect their customers. He stated that this would be the best way to ensure the safety of customers.
Yanase stated:
“What’s brought about the latest scandal isn’t crypto technology itself. It is loose governance, lax internal controls, and the absence of regulation and supervision.”
The head of the FSA also thinks regulators should set up a global framework for dealing with the collapse of a large cryptocurrency exchange. He believes that the first places to implement this system should be countries and islands that are already seen as centers for blockchain technology.
Binance, the biggest cryptocurrency exchange in the world, applied for a license to operate in Japan in September 2022. It has returned (after departing in 2018) because of Prime Minister Fumio Kishida’s promises to loosen up on crypto rules.
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