Japan urges global counterpart to treat crypto like banks

Japan’s regulator has urged their global counterparts for tougher rules for crypto following the collapse of Sam Bankman-Fried’s FTX digital-asset exchange. Mamoru Yanase, deputy director-general of the Financial Services Agency’s Strategy Development and Management Bureau, said that for effective regulation, regulators must have to do the same as they regulate and supervise traditional institutions. Japan’s regulator has been urging counterparts in the US, Europe, and elsewhere to subject cryptocurrency exchanges to supervision that’s similar to those faced by banks and brokerages. Yanase said the country has been making its voice heard through the Financial Stability Board, an international body working on global regulation of crypto asset activities. Yanase said countries need to firmly demand from cryptocurrency exchanges measures to protect consumers and prevent money laundering, on top of having strong governance, internal controls, auditing, and disclosure.