TOKYO—Japan’s Financial Services Agency (FSA) is planning to introduce a regulatory mechanism for virtual currencies, including bitcoin, as early as next year, published reports indicate.
Japan’s FSA, in a November meeting, said an adequate oversight mechanism for virtual currencies is needed, including ways to confirm identities and block money laundering.
The FSA’s decision, reports stated, was spurred by the rise in the number of fraud cases revolving around the digital currency, including the arrest of MtGox chief Mark Karpeles, who ran what was once the world's largest bitcoin exchange.
In its November meeting, the FSA also touched on the need for registering exchanges and protecting customer assets. Participants also noted Japan's position of imposing consumption taxes on trading of bitcoins, Nikkei Asian Review reported. The FSA has invited operators of virtual currency exchanges to share their knowledge and regulatory ideas.