Japan's Financial Services Agency (FSA) has clarified its position on P2P trading, saying it does not intend to prohibit cryptocurrency transactions between individuals.
In February, the FSA called on banks to strengthen customer protection by stopping transfer services for crypto asset exchange service providers if the sender's name is different from the account name. However, this raised many questions among the crypto community, because the department’s directive could jeopardize peer-to-peer trading of cryptocurrencies, in which two different parties participate, and the sender’s name is always different from the account name. The implementation of this measure would deprive P2P traders of access to banking services.
The FSA has clarified that these recommendations do not apply to any person-to-person transactions. The regulator said it intended to crack down on cases where investors deposited money into the accounts of virtual asset service providers (VASPs) rather than into the accounts of other traders.. The FSA also expects banks to block suspicious transactions in which users request a name change on their accounts to send funds to digital asset accounts. The agency noted that these recommendations are “optional” for all financial institutions. That is, it is understood that banks will take specific measures depending on the circumstances, at their discretion.
“We have asked banks and other financial institutions to strengthen measures against illegal money transfers in cases where an individual deposits cash from his bank account into the account of a crypto asset exchange service provider,” the financial regulator commented..
Let us recall that in September the FCA proposed to exempt crypto companies from paying tax on unrealized profits in order to improve the regulatory environment for the development of startups working in the field of digital assets, blockchain and Web3. At the end of 2022, Japan planned to lift the ban on foreign stablecoins.