- Japan’s FSA is proposing to stop P2P transfers from fiat to cryptocurrency.
- The regulator urged local banks to strengthen the protection of their users.
Japan’s Financial Services Agency (FSA) has proposed several measures to protect users from “illegal transfers” on cryptocurrency exchanges. The local regulator said that the number of fraudulent transactions in the country remains high, and most of them are related to crypto assets.
As such, the FSA and the National Police Agency called on banks to “further strengthen the protection of their users.” Specifically, they ordered increased monitoring of illicit transfers at cryptoasset exchange providers.
The FSA also suggested “cracking down on cryptoasset exchange transfers if the sender’s name is different from the account name.”
“This means that if Japanese banks reject any transactions from one person’s bank account to another person’s cryptocurrency wallet, it could seriously undermine the P2P market,” Cointelegraph said in a statement.
Note that the current FSA request is made as a recommendation, and it does not require the fulfillment of specific requirements.
Recall, at the end of 2023 we reported that Japan wants to abolish the corporate tax on unrealized profits from cryptocurrencies.
