Japan Financial Services Agency announces government policies regarding Fintech and Cryptocurrency

Japan Financial Services Agency announces government policies regarding Fintech and Cryptocurrency

Following is extracted from 2017.11 Japan Financial Regulation Policy.

1. Fintech progress brings drastic changes in household economy such as building one’s asset properly. Along with payment sophistication, efficiency and productivity improvement of corporate activity can be managed if corporate’s whole financial and payment process can be seamlessly handled by IT process. Through acceleration of financial innovation by Fintech, it is important to realize improvement of user’s convenience and strengthening corporate growth which leads to our economic and financial development.

2. IT technology that hasn’t been seen before such as blockchain is used in cryptocurrency. Therefore cryptocurrency exchange operator is required a highly sophisticated task management, mainly in the system for ensuring user’s security. Various movements are observed in the market, such as the fork of cryptocurrency for the first time since 2017. It is critical to understand the effect of cryptocurrency environment towards users. Considering the balance of promotion of innovation and users’ security, watching the movement of the market, it is important to monitor if an appropriate task management system has been placed by the exchange operator. To be more specific, the exchange operator should notify users with explanation and information according to the change in circumstances. We should verify whether users’ security is well prepared or not, a practical measurement to prevent fraud such as money laundering is in practice or not based on appropriate risk management.
Recently, the number of ICO (Initial Coin Offering) is increasing and the token published by ICO is considered as a cryptocurrency of act on settlement. In addition, against fraudulent ICO, we should alert the users regarding risks of the market and exchange operators, coping with relevant government offices.