Japan Wants to Regulate Crypto Wallets, Breach of User Privacy?

Crypto wallet users in Japan may have to reveal their identities as the country’s top financial watchdog prepares a law for it.

Crypto wallet users in Japan may have to reveal their identities as the country’s top financial watchdog prepares a law for it.

The Financial Services Agency (FSA) on Monday revealed its plan to regulate cryptocurrency wallet providers, ItMedia reported. The decision came during a cryptocurrency study group meeting after concerns over money laundering and terrorist financing were raised. The agency also looked into pressing matters related to the protection of crypto wallet users that remain mainly exposed to cyber attack and infrastructure failures.

FSA didn’t finalize the details of how and when the new regulation would appear as it shapes up. However, the agency revealed that it would be in line with the FATF-led international standards for preventing money laundering and terrorism financing laws. In a near-term scenario, cryptocurrency exchanges, wallet service providers and ICO companies will have to register with the FSA to continue their operations in Japan.

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