Japan Prepares New Cryptocurrency Regulation Following FSA Proposal

Japan’s Financial Services Agency (FSA) is proposing a regulatory framework requiring digital asset custodians to register, aiming to prevent security breaches like the DMM Bitcoin hack.

The proposal, discussed on November 7, could reshape Japan’s crypto market, enhancing security and oversight of digital assets, thereby potentially influencing global regulatory standards.

Japan’s FSA: New Registration Requirements for Crypto Providers

Significant changes include expanding the regulatory “perimeter” to ensure technology providers adhere to stringent security measures. This move aims to fill gaps that past legislation, focusing mainly on exchanges, left untouched.

“Protecting valuable user assets necessitates a thorough vigilance over the technology that facilitates their security, extending well beyond basic cold wallet protections,” stated an FSA official.

Market responses include heightened scrutiny, as the regulation could impact exchange infrastructures handling major currencies such as BTC and ETH. However, no immediate market fluctuations or liquidity shifts have been observed as stakeholders await final regulatory details.

Market Impact: Regulatory Changes and Historical Insights

Did you know? Japan’s regulatory response mirrors its strategy post-2018 Coincheck hack, underscoring a historical trend of tightening rules to prevent security breaches in the cryptocurrency domain. Insights and news from Crypto Robotics.

As of CoinMarketCap‘s latest data, Bitcoin (BTC) trades at $105,500.70, with a market cap of $2.10 trillion and dominance over 59.19% of the crypto market. Its 24-hour trading volume reached $72.65 billion, representing a 35.10% change. Within 90 days, Bitcoin’s price declined by 12.04%. Supply remains capped at 21,000,000, with 19,946,887 currently circulating.

Bitcoin ‘s price shows signs of potential growth trends, creating a sense of optimism among investors. Expert insights from Coincu research team predict that the new regulations could prompt increased technological investments in security measures, leading to broader compliance with Japan’s rigorous crypto standards. Historical patterns suggest similar frameworks may influence global regulatory approaches. For insights and news, follow updates on The Crypto Basic.