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 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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.