Japan’s Financial Services Agency (FSA) set up a unit for the regulation of digital currencies last week to improve cooperation with other relevant organizations, while Japan’s Ministry of Finance plans to hire more staff on the subject.
The Bank of Japan, which is working on digital yen issuance, will also play a complementary role in the actions taken by the government.
Many regulators around the globe are concerned about platforms built by tech firms as they are not subject to traditional banking rules. The Bank of England said last month that with the use of stablecoins increasing in payments, these companies should be subject to banks’ payment regulation.
The new unit established at the FSA will operate on decentralized finance and blockchain-based platforms, while starting its duties on July 8.