Japan is strengthening its efforts to regulate digital currencies on a global scale, with related government authorities reportedly looking to expand staff to impose stricter rules.
Japanese regulators have expressed fresh concerns over the massive growth of the cryptocurrency market, particularly cautioning against stablecoins, Reuters reported Friday.
Tokyo is willing to engage with global financial regulators to develop stricter rules for private digital currencies, three Japanese officials reportedly said, adding that G7 and the G20 group regulators have called for greater regulations for fiat-pegged stablecoins.
“Japan can no longer leave things unattended with global developments over digital currencies moving so rapidly,” one official said.
According to the report, the Japanese Ministry of Finance is allegedly considering increasing staff to pursue its efforts to scrutinize the industry worldwide. The country’s Financial Services Agency (FSA) has reportedly already established a new unit to oversee digital currency regulation.
Launched on July 8, the new FSA unit aims to monitor broader crypto markets and focus on decentralized finance,