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Japan’s Financial Services Agency (FSA) revealed that regulators will adopt the “travel rules” and standards of the Financial Action Task Force (FATF) for the cryptocurrency industry across the country. At the same time, FATF’s rules are considered far-reaching, and the organization Global Digital Finance and the company’s advisory member Malcolm Wright hope that industry innovators will help with regulatory dialogue.
Japan is an island country in East Asia with a population of 125 million. Since the early days, cryptocurrencies have spread throughout the country, and countless exchanges exist in this nation-state like Mt Gox, which no longer exists. Japanese regulator, the Japan Financial Services Agency (FSA), announced on Wednesday that Japan plans to adopt the Financial Action Task Force (FATF) Guidelines for virtual assets (VA) and virtual asset service providers (also known as VASP). On March 24, the news desk of Bitcoin.com reported the latest FATF guidelines, which apply regulatory standards to decentralized exchanges (dex), defi and NFT.
The FSA announcement from Japan stated that it hopes the Japan Virtual and Encrypted Asset Exchange Association (JVCEA) will cooperate with FATF standards. The FSA also pointed out that the rule will be adopted throughout the island nation by 2022. The Japanese authorities have been aligning with the recommendations of the special organization, and neighboring South Korea has also followed the guidelines. South Korean officials have been using the National Tax Service (NTS), and the Korean Financial Services Commission launched an anti-money laundering law against cryptocurrencies in March.
Malcolm Wright (Malcolm Wright) is a member of a global association called “Global Digital Finance (GDF)”, which aims to advocate and accelerate the best practices of digital assets, hoping that VASP will participate in regulatory dialogue.
According to GDF, consultations with global money laundering and terrorist financing regulators ended on April 20, and GDF responded to this. The association stated that other organizations can “contribute to the GDF response,” and Wright commented on the situation. Malcolm Wright (Malcolm Wright) is the chairman of the GDF’s advisory board and co-leader of the AML working group.
“The latest consultation provides far-reaching guidance for the industry and regulators, not only on spot exchanges and custody, but also on decentralized finance (defi), stablecoins and peer-to-peer (P2P) transactions, all of which may be emphasized by Wright Said. The Chairman of the GDF Advisory Committee added: “As responsible innovators, we have a responsibility to respond and help ensure that future development is commensurate with the risks posed by each ecosystem. “
What do you think of Japan’s plan to adopt the latest FATF guidelines and “travel rules”? Let us know your thoughts on this topic in the comments section below.
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