Japan to reportedly take action to scrutinize crypto globally
Japan is strengthening efforts to regulate digital currencies globally.
According to the report from Reuters, country’s regulators have shown fresh concerns over the massive growth of the cryptocurrency sector, particularly cautioning against stablecoins.
Country‘s capital Tokyo is willing to engage with global financial regulators to develop stricter rules for private digital currencies, Japanese officials said, adding that G7 and G20 group regulators have called for greater regulations for fiat-pegged stablecoins.
Japanese Ministry of Finance is allegedly increasing staff to pursue its efforts to secure the industry globally. The country’s Financial Services Agency (FSA) has already established a new unit to oversee digital currency regulation.
The new FSA unit, launched on July 8, aims to monitor broader crypto markets and focus on decentralized finance (DeFi), the officials stated.
The news comes as the crypto industry is drawing increased attention from global regulators recently. Several countries are already experimenting with central bank digital currencies (CBDC), digital versions of national fiat currencies, to maintain control over money.
Jerome Powell, U.S. Federal Reserve Chairman recently said that the CBDC would cut the need for private options like Bitcoin and stablecoins.