Japan's Financial Services Agency (FSA) is calling on partners in the US and Europe to impose more regulatory scrutiny on cryptocurrency exchanges as the crypto market is trying to recover from the collapse of FTX.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
In an interview with Bloomberg, Deputy Director-General of FSA's Strategy Development and Management Bureau, Mamoru Yanase, said that the market has become big enough to implement "effective regulation" similar to the banking system.
Yanase noted that the latest scandal around FTX wasn't about crypto technology itself. "It is loose governance, lax internal controls and the absence of regulation and supervision," he added.
Yanase also said regulators around the world should put more pressure on crypto businesses to protect consumers and prevent money laundering.
In late December, the Japan Virtual Currency Exchange Association (JVCEA) simplified rules applicable to the listing of digital assets on exchanges. Trading platforms can now list coins without lengthy approval procedures if they are already on the Japanese market.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange