FATF Rules to Be Implemented by Japanese Regulator on Cryptocurrency Companies in 2022
As per the latest reports, the Financial Services Agency (FCA) of Japan has made a new announcement. The Financial Services Agency (FCA) has announced that the travel rule of the Financial Action Task Force (FATF) will be adopted by the regulator. The regulator has also announced these standards will also be spreading all the way to the cryptocurrency firms.
It has been revealed by the regulator that the rule of FATF will prove to be very efficient and long-term for the cryptocurrency industry. Global Digital Finance as well as Malcolm Wright, who is the advisory member of the organization have also shared their views about this.
They have stated that they have full confidence that the innovators and members from the cryptocurrency sector will help the regulator bring in more effective regulations to the industry.
Japan is currently one of the countries that have welcomed the cryptocurrency and the blockchain industry with open arms. The country has given all the opportunities to the cryptocurrency and blockchain companies to make the country a hub for crypto-enthusiasts.
Even the cryptocurrency industry itself has admitted that Japan has become one of the hubs for cryptocurrency enthusiasts. Towards the end of the year 2020, the founder of Binance, as well as the founder of Ripple both, shared their intentions of moving out of the United States.
They claimed that the regulatory infrastructure in the United State is very demoralizing for the entire cryptocurrency industry. The founder of Binance revealed that their exchange is not able to perform fully as per its potential, despite being the largest cryptocurrency exchange in the world.
On the other hand, Ripple is already caught up in a lawsuit that has been filed against it by the US SEC. The founder of Ripple stated that the United States’ administration and regulators just wanted to take out any cryptocurrency that poses a threat to USD’s sovereignty.
However, the CEOs of both companies revealed that they want to move somewhere in Asia and also provided a few locations they had in mind.
Surprisingly, the CEOs of both companies confirmed that Japan was one of the countries they were considering moving to if they move out of the United States.
This goes onto show that the cryptocurrency industry feels safe and supported moving to Japan. However, as the crypto sector expands in Japan, the country is also ensuring that it has complete regulatory control over the industry.
This is the reason why on Wednesday, March 31, 2021, the FSA made the announcement that it is adopting the guidelines that are provided by the FATF.
The guidelines being referred to by the regulator were for virtual asset service providers as well as virtual assets. The regulator has announced that the guidelines will be implemented on all crypto-entities in the country by 2022.