The FSA held an international round table on the question of the regulation of cryptocurrencies

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The chief financial regulator of Japan – financial services Agency (FSA) – have shared details of their first ever round table on the regulation of cryptocurrencies.

The event, which was attended by regulators from more than 15 countries, called “Roundtable on oversight of the cryptocurrency assets – recent developments and future challenges”. The list of countries participating, the Agency did not disclose, but said:

“The round table brought together the heads of financial regulators and representatives of international organizations, providing a useful opportunity to share experiences and discuss issues of crypto-currency assets that could strengthen international cooperation.”

“The purpose of this round table is to reach agreements about any new laws and regulations. We are gathered to exchange information about the problems faced by the relevant regulatory authorities, as well as to stimulate cooperation and work at the international level”, – said the Agency.

The roundtable participants discussed four main issues. First, discussed the latest associated with cryptocurrencies technological developments. Second, the regulators shared their thoughts about monitoring cryptocurrency trading platforms. The third theme of the discussion was “possible directions of international cooperation”, and in conclusion, the participants discussed the issues of “investor protection and market integrity”.

In addition, as reported by the Agency, the parties expressed their willingness to participate in such roundtables in the future. At the end of last week, the regulator said:

“In the future we want to hold such round tables on a regular basis. The FSA believes it is important to share information with the appropriate regulatory authorities and to cooperate to prevent money laundering because of the transboundary nature of cryptocurrency assets.”

Recall that recently the Board of securities and exchange Board of India (SEBI) in its annual report said that he sent people to Japan and several other countries to discuss rules for the regulation of cryptocurrencies and ICO. South Korea also said earlier that cooperates with Japanese regulators on issues related to cryptocurrency.

Internal meetings

The Japanese regulator also conducts regular meetings of the research committees to discuss various issues related to the regulation of cryptocurrencies, and in particular cryptocurrency exchanges. Friday, October 19, was held the seventh meeting of study groups.

The main topics of discussion were the cryptocurrency derivatives as underlying assets. According to the self-regulatory organization Japan Virtual Currency Exchange Association (JVCEA), last year, margin trading accounted for about 80% of all cryptocurrency transactions in Japan.

At the meeting it was also noted that some cryptocurrency exchanges offer a 25-fold leverage, which can lead to significant losses for investors. JVCEA proposed measure limits the leverage from 1 to 4. The Association, whose members are 16 regulated cryptocurrency exchanges Japan, is currently awaiting certification from the FSA, to be able to apply the rules of self-regulation for its members.

Also at the meeting was discussed the question of whether there should be a deadline for prospective dealers to exchanges that are allowed to work while their applications are under review by the FSA. For example, according to one of the proposals put forward at the meeting, if the exchange is unable to fulfill registration requirements in three years, they can lose their status. Currently in this status are exchange Coincheck, Lastroots and Everybody’s Bitcoin.

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