A meeting is scheduled for the beginning of April by the Japan’s Financial Services Agency (FSA), where representatives of the Japan’s watchdog should participate on an official debate on the topic of blockchain applications in the financial markets of the “Land of the Rising Sun”.
According to the notice from April 8, 2016, the regulatory body with supervisionary obligations over the banking and insurance sector, as well as over securities and exchange, stated that it plans to consider the effects of automated, high-frequency trading operations on stability and transparency of Japan’s market, as well as test new developments in the asset management industry. Nevertheless, the FSA has not informed about a specific date for such a debate yet.
According to the official statement of the Japan’s watchodg FSA:
“The development of FinTech such as block-chain technology is now a rapidly emerging, important topic for market participants to address intentionally. Discussion also needs to be held on what kind of solutions we should prepare in order to enhance the competitiveness of our markets.”
This statement only follows previous remarks made couple of weeks ago, when the regulatory body FSA asked for a support for Asia to become a major global leader in blockchain applications. At the time, coutnry’s vice minister for international affairs – Masamichi Kono, supported such a fresh new approach to boost adoption of disruptive technologies like blockchain.
The FSA is not a new one to digital currency issues, having drawn up a proposal for regulating exchange services in the wake of the collapse of Tokyo-based bitcoin exchange Mt Gox. It has emphasized that major reason for such approach is its concern related to a high-speed trading and its possibility to contribute to market volatility and negative effects on “price formation in the markets”.
The statement added:
“The Japan FSA believes that various issues in Japanese markets and exchanges would need to be addressed from a broad perspective. ”
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