Japan’s long-term approach to CBDC! | Author: Dwayne D’cunha | The Capital | July 2021
Although countries like El Salvador have been praised for adopting Bitcoin as legal tender, Japan has been on this path since 2016. In the second half of 2016, Fix Japan’s PSA (Payment Service Act) defines virtual currency as an asset that can be used to purchase goods, lease fees or services, and most importantly, it can be transferred through an electronic data processing system.
This also caused the exchange to start to register to Financial Services Authority (Financial Services Agency), to supervise the stability of Japan’s financial system through supervisory agencies and formulating new financial legislation. PSA is Modify again In May 2017, it registered an exchange that provides services related to virtual currencies in Japan. Nevertheless, they are still allowed to continue operating during the application screening process. Of the 21 exchanges undergoing pre-revision, 16 Finished cutting And get permission to work before the end of the year.
This did not last long because Coincheck and Zaif were hacked in 2018 and eventually failed $500 million with 60 million USD. This not only made people lose confidence in the exchange, but also made Japanese regulators lose confidence and called for the launch of JVCEA (Japan Virtual Currency Exchange Association) Repair damage. The FSA also banned all these exchanges and ensured that they comply with established regulations.
By 2019, the FSA will begin to enter the market With the update of PSA and ITU(Financial Instruments and Transaction Law).In addition to establishing JSTOA(Japan Securities Token Issuance Association) Supervises and manages ICO (Initial Coin Issuance) and STO (Securities Token Issuance) Bad reputation In the past few years.