Japanese Financial Regulator Proposes Stricter Measures For P2P Crypto Transactions
Japan’s principal financial regulator has unveiled a series of proposed measures that could negatively impact the peer-to-peer (P2P) transactions market.
In a Wednesday announcement, the Financial Services Agency (FSA) issued a formal request to Japanese banks, noting that a high number of fraudulent transactions in the country have links to crypto assets.
Collaborating with the National Police Agency (NPA), the FSA and NPA asked banks to enhance user protection through various initiatives.
One of the recommended initiatives asks banks to “strengthen monitoring of unlawful transfers to crypto-asset exchange service providers.”
While it doesn’t provide explicit details, it urges banks to be more vigilant in detecting and preventing fraudulent transfers.
However, it is the second proposed measure that could potentially disrupt the P2P market.
The FSA suggests that transfers to crypto-asset exchange service providers should be halted if the sender’s name differs from the account name.
The Japanese press release uses the verb “reject,” clarifying that this suspension would apply to both individual and corporate accounts.
This recommendation has raised concerns among users of P2P platforms, as the nature of such transactions often involves different names on the fiat and crypto ends.
If Japanese banks start rejecting transfers from one individual’s bank account to another’s crypto wallet, it could pose a significant challenge to the P2P market.
It is important to note that the current FSA request is presented as a recommendation rather than a mandatory requirement.
Its purpose is to encourage initiatives rather than impose specific obligations.
The response of the banks to these recommendations and the potential impact on the P2P market
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