Lawyers Criticize Japan’s Crypto Regulations

Japanese lawyers and accountants have criticized the country’s government for imposing what they term “restrictive” cryptocurrency regulations.

Speaking at a cryptocurrency conference held at the University of Tokyo, financial and legal experts advised the government to relax regulations to help promote the country’s growing fintech industry.

So Saito, of So Law Firm, stated, per Japan’s Crypto Watch, “Japan is lagging behind the rest of the world due to the obstacles created by regulatory policies.”

Hitoshi Kakizawa, an accountant specializing in blockchain-related matters said, “Japanese regulations make no sense, business-wise, and [Japanese] money is escaping overseas.”

And a senior lawyer from corporate legal firm Anderson Mori & Tomotsune stated, “There are currently instances whereby regulations are too severe and this is hindering the progress of promising businesses.”

The regulatory Financial Services Agency (FSA) has stepped up its policing of the cryptocurrency industry in the wake of the damaging Coincheck hacking attack in January.

The FSA recently added a new unit to help it counter money laundering through cryptocurrency exchanges.

The agency has also appointed a new chief, and will this week pass rule over the six leading exchanges that were last month hit with business improvement orders.

The deadline for meeting the FSA’s improvement guidelines was July 23. Exchanges failing to meet the FSA’s instructions could be handed further punishment, including possible suspension or winding-up orders.