In the last couple of days, there has been some pressure put upon the Asian region, in terms of Bitcoin acceptance and regulation.
In fact, the latest reports indicate that the Japanese Government is currently gearing up to regulate bitcoin activity throughout the country, following the investigations being carried out around the Mt Gox bitcoin exchange.
Nikkei, an Asian publication has recently reported that officials of a selected panel created within Japan’s Financial Services Agency are preparing to start working on a regulatory framework that would apply to all bitcoin-related businesses, but also to casual bitcoin users.
It’s worth pointing out that the Japanese government has made their wish of regulating the currency clear, especially after the Mt Gox exchange disaster. By keeping an oversight over the development of bitcoin in the region, the government believes that it will be able to help out whenever needed, while also making sure that bitcoin-based criminality does not spread. The main idea behind the regulatory framework is to give Japan the possibility to confirm the identities of those trading bitcoin, and help block money laundering.
To make sure that the members of the panel come up with smart ideas, expertise will be offered by various exchange operators in the country, which have enough experience with bitcoin, needed to carry out currency analysis and studies. Regardless of this, the policies being implemented will first influence Bitcoin exchanges and not bitcoin users directly at this moment in time.
By doing so, Japan will join a growing number of countries which have chosen to open their eyes towards the financial phenomena, and come up with ways to make sure that it works in the benefit of both countries and its people. While most bitcoin users advocate for transparency and anonymity, it’s worth pointing out that a bit of regulation never hurts, especially if it does not compromise the security of the average Joe. However, there are also countries where Bitcoin is heavily regulated. In case Japan chooses to adopt such a strategy, then the development of the digital currency will be heavily affected in the region, thus possible leading to financial destabilization, considering the rising popularity of Bitcoin.
So far, the Japanese Financial Services Agency did not issue any response to the reports, so we’re thrilled to find out what they have to say.
Based on everything that has been outlined so far, what do you personally think about the Japanese Government’s wish to have more regulation imposed upon cryptocurrencies? Would it be a step in the right direction for Bitcoin? Let us know your thoughts in the comment section below.