Financial System Council, a branch of the Financial Services Agency of Japan, has issued a draft proposal with regulations regarding cryptocurrencies. 

According to these regulations, operators of cryptocurrency exchanges are supposed to be registered with the Financial Services Agency, writes The Japan Times referring to unnamed sources.

The draft implies that cryptocurrency exchange operators should possess a certain amount of capital. They should also manage their own assets separately from assets of their clients and undergo regular checks carried out by auditing firms.

Besides, when a new account is created, the identity of the client should be reported to the authorities by the exchange operator. This seems to undermine anonymity – the underlying principle of bitcoin.

All these restrictions are introduced in connection with Mt. Gox exchange collapse last year, and are supposed to guard the rights and security of virtual exchange customers.

No official statement, though, has yet been published on the Financial Services Agency’s website.  

Andrew Levich