Financial regulator of Japan plans to introduce more stringent measures to regulate the cryptocurrency market to limit speculative investments.
In April 2017, the financial services Agency (FSA) of Japan revised the Law on payment services with the aim of legalizing the cryptocurrency in the country and the introduction of licensing of kryptomere to protect users. The amendments suggested that the bitcoin and other virtual currency will be used as a means of payment.
As noted by the FSA official, the Agency has developed a minimum framework to prevent the situation of a lack of regulatory law for cryptocurrency with mass adoption.
At that time the financial regulator did not foresee that cryptocurrencies will mostly be used as a payment instrument and as an investment asset for speculation.
The FSA has 3.5 million users of cryptocurrencies. But the use of digital currencies as alternative legal means of payment is limited, and most transactions aimed at making a profit from rising prices at the end of November, said the representative of the FSA.
He also pointed out that because virtual currencies are beyond the Law on the financial instruments and exchanges that trade them are actually not regulated.
“Virtual currency needs to be positioned as investment assets, while it is necessary and urgent to establish a system of legal protection of investors”, — concluded the expert FSA.
Recall that the recently established cryptomeria Japan industry organization self-regulation is already proposed to set a limit of leverage in margin trading cryptocurrency assets in 1:4. Despite the fact that the stock market of the country, this is a limit of 1:25.