Japan’s Financial Services Agency (FSA) has no intention of banning peer-to-peer digital asset activity, the regulator said in its latest policy recommendation to banks.
The agency has publicly called on financial institutions to step up action against ‘cryptocurrency’ crime, and has proposed several measures it believes would better protect investors.
One controversial proposal called on banks to “suspend transfers to cryptocurrency exchange service providers if the sender’s name is different from the account name.”
This recommendation was considered an attack on peer-to-peer digital asset transactions involving two different parties, where the sender’s name is always different from the account name. Implementing this bill would deny P2P traders access to banking services.
However, these measures are only recommendations and the Bank may reject or modify them as it sees fit.
In response to media inquiries, the FSA made it clear that its recommendations did not have “peer-to-peer transactions” in mind. According to regulators, the intention is to crack down on cases where investors deposit money into virtual asset service provider (VASP) accounts rather than into other traders’ accounts.
The financial authorities said, “The purpose of this request is to ask banks and other financial institutions to strengthen measures against illegal fund transfers when individuals deposit cash from their bank account to the account of a cryptocurrency exchange service provider.” . Power socket.
The FSA also expects banks to block suspicious transactions where users request account name changes to send funds to digital asset-related accounts.
The agency added that while several banks have implemented its recommendations, none have published data that would suggest regulators should be more concerned about the level of ‘cryptocurrency’ crime.
Japan has maintained its position as a leader in Bitcoin regulation while allowing an increase in digital asset activity. Recently, in order to increase investment in Web3 companies, it was proposed to allow VCs to hold and acquire digital assets, including digital currencies, in return for investing in domestic startups.
Watch: Direct communication – this is what P2P is about, says Craig Wright.
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