One of the biggest financial regulators operating in Japan claimed that they planned to fight against money laundering in every way possible. This plan would also include individuals who deal in cryptocurrencies. The owner of the platform further stated that these crypto dealers also carry the obligation that regular financial institutions do to ensure they steer clear from criminals.
The financial services agency also plans to play its role in this combat and it made the first move by making a massive claim. In this claim, the agency stated that it intends to form an industry-wide system that would help financial firms judge if their clients are laundering money or financing terrorism.
The chairman of the Securities and Exchange Commission, Gary Gensler made a call to the congress this week where he granted the agency further resources and scope. He took this bold step to ensure the crypto sector is looked after the right way, as it is quite similar to the Wild West at present.
One of the best things about forming a shared system would be that it would first of all be quite cost-effective. What’s more, it would help determine the terrorists roaming around planning to harm the industry. Let’s be honest, while there is no denying that separate financial firms could do the same job as well, but there is a good chance that they won’t be as effective.
According to Nakajima, the agency he runs intends to create a plan for the fresh platform and make sure it is up and running by next year. The executive director and chief analyst of the Monex Group brokerage division Nana Otsuki made an excellent claim. He stated that getting crypto dealers involved in a system like this would be a tremendous boost for the sector, especially in the long run.
He further elaborated that the plan would be sustainable in the long or even medium run if they could steer clear from a massive stigma. The stigma he was talking about was that of crypto being unsafe financial products that include money coming from the underground.
That being said, this project faced its fair share of challenges which required a lot of collaboration from the government. This included ensuring that suspicious individuals who had difficult names (non-Japanese) would have to register themselves to a database.
Besides the excellent effort to fight against money laundering crimes, a research group has also been started for encouraging financial innovation. This includes bitcoin, blockchain and a variety of other cryptocurrencies.