The Japanese top-most regulator, Japanese Financial Services Agency (JFSA) hosted the first-ever cryptocurrency round table in which 15 countries participated to discuss the news revolving the crypto industry, the challenges faced by the industry and its further progress.
JFSA explained the purpose of this round table as;
The roundtable brought together relevant financial supervisors and international organizations, providing a useful opportunity to share experiences and discuss issues of crypto-assets, which could contribute to strengthen international cooperation.
The reason behind this meeting was to bring together financial experts on a table to discuss the issues faced in the world of crypto and share their experiences in the industry for better understanding and growth of the industry.
The participating countries focused on four major aspects of the crypto world for which they shared their experiences and information on the roundtable, these were:
- The technological developments and recent challenges were analyzed by the experts.
- Experts showed their concern on the examination of the trading platforms of the cryptocurrency.
- The possibility of international cooperation was discussed by the roundtable participants in order for the cryptocurrency to grow globally.
- The final major concern of these experts which was thoroughly observed was the “investor protection and the market integrity” which is the result of recent frauds and hacks that has put investors in jeopardy.
For the safety of the investors and protection of their crypto-assets, the Japanese Financial Services Agency showed desire to carry out these roundtable meetings on a regular basis so that necessary changes and upgrades may be brought for the betterment of this industry, JFSA stated:
In the future, we want to hold this roundtable on regular basis … JFSA considers it important to share information with respective regulatory authorities and to build on supervisory cooperation in order to prevent money laundering because of the borderlessness of crypto-assets.
The JFSA has clearly showed great intent to minimize the on-going fraudulent activities in this unsafe and unprotected market that has caused losses worth of hundreds of millions of fiat currency.
Also, these matters are extremely important to be taken into consideration, otherwise there is a high probability that these frauds and hacks may prove to be a threat to investors and they might even consider exiting the market – reason being their recent losses through illegal activities.
It has been reassured by numerous nations such as India and South Korea that their financial experts and supervisors took part in the roundtable meeting that was hosted by the Japanese in order to look into crypto-related matters with cooperation of other countries.
Moreover, to discuss the regulatory issues occurring in the cryptocurrencies, the Japanese Financial Services Agency is conducting regular group meeting sessions to find viable solutions to these problems. The latest group meeting was counted as the seventh in total that took place on 19th of October (2018).
Another major issue discussed at this meeting was the fact that a lot of exchanges in the crypto world offer up to 25 times leverage that could incur massive losses to investors and that could eventually damage the crypto industry. In response to this issue, suggestions were given to limit the leverage to only 4 times in order to set a benchmark for exchanges that cannot be exceeded. Therefore, the damage to investors and the crypto industry can be controlled. This proposed idea still awaits certification from the Japanese Financial Services Agency (JFSA) after which these rules can be implemented.
Lastly, an issue also taken into consideration was the concern if there should be a deadline for deemed dealers to conduct their operations while their applications are still under examination by the Japanese Financial Service Agency (JFSA). The suggested idea states that if the required registration criteria is not matched by the dealers within a certain time period, then they must lose hold of their status as deemed dealers.
Hence, we can conclude that this roundtable meeting has helped experts and supervisors from different countries understand the issues that surround the crypto world nowadays and the challenges the crypto industry is facing. Relevant proposals have also been suggested by experts to overcome these issues and the struggle to provide a viable business environment for investors and businesses to carry on with their processes has also been lined up with the help of this meeting.