Japan is home to some of the most rigorous cryptocurrency regulations around, and regulators are always looking out for traders – not their own agenda like the US Securities and Exchange Commission (SEC). In a bid to keep traders safe and happy, the Japanese crypto watchdog – the Japanese Financial Services Authority (JFSA) – allows traders to submit complaints and queries to help ensure they stay safe when trading the crypto world. Thanks to this open and transparent nature, the JFSA has been swamped with complaints and queries about crypto exchanges and projects operating in the country.
A Wide Range of Issues
The Japanese public has submitted issues on a whole host of topics, including privacy, what to do in the event of an exchange getting hacked, investor security, and reporting scams. During 2018, the JFSA saw a whopping 3,657 cases opened compared to 2,166 during 2018. Cases tend to increase as the price of Bitcoin falls, hinting at why the number was higher in 2018. That being said, as adoption begins to increase, so too will the number of people complaining or asking questions about the crypto trading world.
Updating Legal Framework
Japan is well known for having some of the most stringent crypto regulations, and back in December 2018 the JFSA proposed amendments to make the trading world safer. The regulations are currently being deliberated over and are likely to go live in the coming months. On the back of the announcement of these regulations, a record number of companies applied for regulation – hinting that they’re not good enough to pass the new framework when it’s introduced.
Could We See a Japanese ETF?
The crypto world is desperate for a Bitcoin ETF for some reason, and the SEC keeps shutting it down. However, the JFSA is taking another look at the possibility of one happening in the country. If it goes ahead, Japan would be the first and only country on the planet to have a Bitcoin ETF available for stock traders. The JFSA originally shot the idea down, but on the back of its new regulation amendments it has decided to give it another go.
Japan is no doubt the hottest place in the world for crypto legislation and adoption, so it comes as no surprise that there has been an increase in complaints. More unexperienced traders are entering the markets and don’t fully read the terms and conditions, meaning they often end up needing help they simply can’t get – especially when it comes to seed phrases. Hopefully, the JFSA can hire more staff to handle all the complaints.