Japan’s Financial Services Agency (JFSA) recently hosted a roundtable on Crypto assets oversight. The regulator’s first-ever roundtable was attended by regulators and international organizations from over 15 countries which got a chance to talk about Cryptocurrency regulatory issues. JFSA said that such meetings will be important in the future due to the borderlessness of the virtual currencies.
15 Global Regulators Meet To Share Information
The Japanese Financial Services Agency (JFSA) recently managed to bring together regulators and international organizations from more than 15 different countries. It has been revealed that the attendants got a chance to discuss issuers related to Cryptocurrencies and share their experiences with the digital assets. The agency said that such meetings are crucial in strengthening international cooperation in Crypto-related issues in the future.
The meeting, which was JFSA’s first-ever international virtual currency roundtable, also looked at the recent developments in the Crypto sector and the challenges that they pose. It’s no secret that regulators around the world have been having a difficult time determining how they will handle the sector. Coming together in such meetings can play a major role in determining the regulation of the sector in the future.
Other Important Issues Discussed In The Cryptocurrency Roundtable
According to JFSA, the first issue that was discussed by the participants of this meeting was the recent technological developments in the Crypto sector and main challenges. The meeting also discussed the supervision of trading websites such as exchanges. JFSA also revealed that the attendants looked into possible areas where regulators around the world can cooperate. Lastly, the meeting discussed market integrity and the need to protect investors.
Countries around the world have recognized Japan as a leader in the Crypto sector if the recent developments are anything to go by. Some time back, South Korea admitted that it had been working closely with Japan on Cryptocurrencies. The Securities and Exchange Board of India (SEBI) had also sent some of its officials in Japan to discuss the regulation of the Crypto sector.
The Need To Protect Investors
JFSA will also be hosting study group meetings regularly where the focus will be on Cryptocurrency regulation. It has been confirmed the seventh such meeting was held on Friday. The meeting discussed derivatives trading with the virtual currency where the Japan Virtual Currency Exchange Association (JVCEA) said that last year, of all Crypto assets trading in the country, 80 percent were through marginal trading.
In the meeting, it was said that some Cryptocurrency exchanges offer leverage as high as 25x. The association argued that such high leverages may lead to huge losses for investors. Among the proposals discussed in the meeting was allowing a maximum leverage of 4x through a self-regulatory measure. JVCEA is planning to enforce these rules once it gets certification from JFSA.
The meeting also discussed the about Cryptocurrency exchanges that are still operating in the country while JFSA is reviewing their application. They include Everybody’s Bitcoin, Lastroots, and Coincheck. Currently, there is no deadline on when such deemed dealers should remain operational. There was a proposal to scrap their deemed dealers status after three years if they don’t meet the registration requirements.