Advances in technology have revolutionized the finance industry. Japanese financial regulator put in place mechanisms to ensure that it keeps pace with the changes in the sector.
Strategy Development and Management Bureau
On Wednesday, the Financial Services Agency announced that it has established a Strategy Development and Management Bureau whose main task would be to regulate the sector. The launch of the bureau comes a year after the regulator closed down the Inspection Bureau. The Inspection Bureau was established in the 1990s as one of the steps to mitigate the effects of the Asian financial crisis.
Boosting security and transparency
The Inspection Bureau was created so as to increase transparency in the financial service sector. Additionally, the bureau was also used by the government to keep the industry regulated. The regulatory body could for instance carry out on-site inspections so as to ensure nothing happens outside the company’s offices.
The SDMB will take over the role of on-site inspections at all the institutions that offer financial services. It will be tasked with monitoring and preventing illegal transactions. The bureau will also deal with tasks related to matters from several fields in the financial services industry. Some of the issues to be address are development of financial technology, antimony laundering and development of the cryptocurrency market.
The move is a big step for the sector
The news is a big boost for the cryptocurrency market and the entire financial service industry. This is because it will boost the level of accountability and transparency in the sector.
According to recent reports, the local cryptocurrency industry has been attracting a lot of regulatory and institutional recognition over the past few months. In its recent report, the ACCJ Journal noted that there is a big improvement in the country’s regulatory framework involving cryptocurencies and blockchain.
In statement, Mineyuki Fukuda, a former Liberal Democratic Party lawmaker and a founding member of the Japan Blockchain Association (JBA), said that before the Mt.Gox heist in 2014, the cryptocurrency and blockchain industries had no regulations. He noted that this is different from the current situation where regulators are committed to boosting consumer protection.