The Financial Services Agency of Japan (FSA) presented its final version of the report, based on which new requirements for regulating the cryptoindustry can be introduced into the country's legislation. The document was prepared on the basis of the previously published preliminary report and supplemented after the meeting of the working group on the study of cryptocurrency, which was held last week.
Thus, in the document, the activity of cryptobirth and other service providers using cryptocurrency is considered in 9 key areas.
One of them affects the reservation of net assets – exceeding the size of customer deposits and denominated in the same type of currency. In addition, companies will be required to disclose financial statements and develop a system that allows them to provide customers with a statutory lien on deposited funds.
Companies may be forced to disclose trading prices. At the same time, they will not be allowed to advertise, promote and encourage speculative trading and will be obliged to follow the rules of the self-regulating organization (SRO) – the Japanese Virtual Currency Exchange Association – in case of refusal, the FSA will be able to withdraw or not issue a license to the company.
The ban also includes cryptocurrency transactions , which “may impede the protection of users or appropriate and reliable business operations,” and every regulator of the proposed cryptocurrency will need to be informed about the changes.
Cryptocurrency services that practice margin trading will have to be registered. There will be restrictions on leverage, companies will also be required to explain the risks and assign a minimum amount of margin.
The new rules will affect the activities of providers of custodial services and unfair work in spot trading – the FSA will prohibit individuals and legal entities “reprehensible behavior, spreading rumors and price manipulation”, and companies that carry out exchange operations with cryptocurrency will be obliged to track transactions related to making profits based on non-public information.
Recall that the new proposals will be submitted to the parliament in early 2019. And the number of companies that show interest in registering as operators of cryptobirth has now reached 190.
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