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- Japan’s Financial Services Agency has announced a new set of Financial Administration Policy for the second taxation year of Reiwa on 31st August.
- The Financial Services Agency is a Japanese government agency which overlooks all financial institutions like banks, exchanges, securities and insurance companies.
- In this context, anti-money laundering (AML) and anti-terrorism financing (CFT) policies will be introduced.
Japan’s Financial Services Agency has announced a new set of Financial Administration Policy for the second taxation year of Reiwa on 31st August. The Financial Services Agency is a Japanese government agency which overlooks all financial institutions like banks, exchanges, securities and insurance companies. Basically, JFSA is Japan’s sole financial regulator. It also supervises the activities of the Securities and Exchange Surveillance Commission and the Certified Public Accountants and Auditing Oversight Board.
Improved Security Measures for Virtual Currencies
The Agency announced that they will tighten the safety measures regarding virtual assets to create a much more lively cryptocurrency market. Safety plays a very major role in cryptocurrency investments. To some extent the lack of any competent authority to regulate crypto assets is a hindrance in gaining trust and adoption from investors. In this context, anti-money laundering (AML) and anti-terrorism financing (CFT) policies will be introduced. The agency confirmed that it would take all necessary steps in cooperation with ministries and industries to enhance the quality of financial regulation.
Enhance Market Functionality a Priority
However for now these three points were their priority in the coming days:
• Fight the coronavirus pandemic and to create a post covid society.
• Build a highly functional and attractive financial and capital market.
• Advancing the procedures for FSA reform.
JSA said that it will work on improving the functionality of the current financial and capital market and play a much bigger role in Asia and internationalisation of financial industries around the globe. Japan’s financial market can no doubt play a crucial role in creating new opportunities in the financial world. Moreover, the efforts to make the financial market much more attractive and robust will to some extent add to international risk diversification as the number of geopolitical risks are taking a toll everyday.
Use of AI and Blockchain to Build Financial Systems
Apart from enhancing the purpose of Japan’s financial and capital market, the Financial Services Agency will scale up the monitoring procedures of the institutions which look after deposits. In addition they will also monitor transfer companies and new business formats. The use of Artificial intelligence in building a full proof system to check the efficiency of the AML and CFT policies was also mentioned. Moreover the implementation of Blockchain technology in its financial system would be discussed on both domestic and international levels.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
