Japan's Financial Regulator to Discuss Blockchain Market Applications

NEWS
Stan Higgins
Apr 8, 2016 at 18:27 UTC  |  Updated  Apr 9, 2016 at 16:00 UTC

Japan's Financial Services Agency (FSA) is set to hold a meeting early next month at which representatives of the regulatory body will take part in a policy discussion on blockchain applications in the country's financial markets.

In an 8th April notice, the government entity overseeing banking, insurance and securities and exchange, said that it plans to weigh the effects of automated, high-frequency trading operations on market stability and transparency, as well as examine new developments in the asset management industry.

A date for which has not yet been disclosed by the FSA.

The agency stated:

"The development of FinTech such as block-chain technology is now a rapidly emerging, important topic for market participants to address intentionally. Discussion also needs to be held on what kind of solutions we should prepare in order to enhance the competitiveness of our markets."

The remarks come weeks after an official from the FSA voiced support for Asia to become a global leader in blockchain applications. At the time, vice minister for international affairs Masamichi Kono advocated for a risk-oriented approach to encouraging adoption of disruptive technologies like blockchain.

The FSA is no stranger to digital currency issues, having drawn up a proposal for regulating exchange services in the wake of the collapse of Tokyo-based bitcoin exchange Mt Gox.

The agency is also playing a role in defining the legal status of digital currencies in Japan.

Japanese business image via Shutterstock

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