Japan's Crypto Boom: 11M Accounts, Tight Regulation
1min read Binance CEO Richard Teng has praised Japan's approach to cryptocurrency regulation, highlighting the country's commitment to investor protection and transparency. Speaking at the Global Financial Technology Network Forum in Japan, Teng noted that Japan had 11 million cryptocurrency accounts in 2024, underscoring the need for robust regulations to ensure long-term stability and security in the market.
The Financial Services Agency (FSA) of Japan is responsible for overseeing the country's crypto regulations, enforcing the Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA). Self-regulatory organizations such as the Japan Virtual Currency Exchange Association (JVCEA) play a crucial role in implementing investor protection, security, and transparency-oriented laws. The FSA has recently warned several exchanges, including Bybit, KuCoin, Bitget, Bitcastle, and mexc global, for operating without proper licenses.
Japan is also pushing forward with new regulatory changes for crypto assets and stablecoins. Yufu Shigeyuki, Director of Planning and Market Bureau at the FSA, has proposed recommendations based on discussions at a recent Financial System Council meeting. These reforms include a domestic asset holding order to enhance investor protections, ensuring that crypto exchanges maintain distinct asset separation. Additionally, the proposal aims to separate crypto broking companies from other business undertakings and provide stablecoin issuers greater freedom in managing trust-supported assets. Future amendments to the Trust Business Act and Payment Services Act will further solidify these improvements.
Teng's endorsement of Japan's regulatory approach is a testament to Binance's global pursuit of regulation. His admiration for Japan's accomplishments suggests that the country may serve as an inspiration for others seeking to strike the ideal balance between innovation and investor protection. As Japan continues to develop its crypto regulations, it remains a key player in the global regulatory landscape.
Japan's regulation has positioned it as a model for innovation and investor protection in the cryptocurrency industry. With increasing adoption of cryptocurrency, Teng believes that other countries can look to Japan's model as a template for creating clear and functional regulations.
