Bank of Japan advocated adopting common crypto regulations

The need to control the cryptocurrency sector stems from the growing popularity of virtual assets around the world, the regulator’s representative believes

01.04.2022 - 15:00

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What’s new? Head of the Bank of Japan’s (BOJ) payment systems department Kazushige Kamiyama called on the G7 nations’ leaders to adopt common rules to regulate digital assets. According to him, the need to control the cryptocurrency sector stems from the growing popularity of virtual assets around the world, Reuters reports.

Information on the Reuters website

What are the prospects for CBDC in Japan? Kamiyama added that the regulatory framework will affect the process of developing Japan’s own central bank digital currency, the digital yen. Bank of Japan Governor Haruhiko Kuroda announced at Japan’s FIN/SUM fintech summit that the bank has no plans to introduce a CBDC anytime soon.

The second phase of testing is due to start in April, so any new rules adopted by the G7 will have some impact on this process. Kuroda said that a decision on whether CBDC can be issued in Japan is likely to be made in 2026. Kuroda explained that the BOJ plans to carefully consider the expected role of central bank money in the lives of Japanese citizens.

What had happened before? Japan plans to change the legislation to strengthen sanctions against Russia. The country’s Prime Minister Fumio Kishida stated that the government will revise the foreign exchange law to ensure that cryptocurrency exchanges comply with it.

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