The financial regulators in Japan are imposing strict laws against the unregistered investment firms that are soliciting funds in the cryptocurrencies. The financial regulators of Japan are looking to break the loophole that is circulating in the crypto market.
As per the reports of the news outlet Sankei Shimbun, the Financial Service Agency (FSA) of Japan is planning to bring these schemes under the Financial Instruments and Exchange Act. But, any further timeline for the change is not yet declared.
The Financial Instruments and Exchange Act terminate all the unregistered schemes that are receiving funds and investments in fiat currencies. However, the act doesn’t mention any cryptocurrencies.
The financial watchdogs were monitoring the issue – waking up people about the illegal schemes running in the country. Earlier in November, the Tokyo police arrested more than eight men who were running such schemes and scammed around $70 funds of victims.
Further investigation showed that the culprits had collected most of their payments in digital currency – probably Bitcoin. As per the exact figures, around $4.40 million cash was collected from the eight men. The scammer was making fool of people under an investment firm called Sener.
One of the officials said that it was possible that the criminals would not have been caught in the scam solicited only the cryptocurrency.
Since the shockwave – that collapsed the Mt Gox Exchange in 2014, the FSA of Japan has been regulating the crypto market. Some measures have been taken by Japan’s FSA – launching a licensing scheme for crypto exchanges – instigating security and anti-money laundering rules.
In the recent time, FSA has approved the crypto-traded funds (ETFs). Further, the plans regarding the trade of crypto derivates on financial exchanges have been dropped – as products would encourage speculation.