Japanese Financial Authority Invites Global Regulators to Blockchain Roundtable

Given the higher fluctuation of digital currency prices, regulatory efforts at an international level are becoming more and more common. For instance, recent reports indicate that the Japan Financial Services Agency, known as the FSA has held a blockchain roundtable, inviting both local and foreign financial regulatory and supervisory institutions.

With this in mind, the roundtable has been launched by the FSA and other regulatory authorities to share their opinion, and discuss possible technical risks and opportunities in the blockchain and cryptocurrency markets. The project was conducted as part of the multilateral joint research program, created as part of Japan’s Growth Strategy 2017 project, and the Strategic Direction and Priorities of the Japanese FSA (2017-2018).

Reports indicate that the list of participants to the blockchain roundtable include: the Monetary Authority of Singapore, the UK Financial Conduct Authority, the Abu Dhabi Global Market Financial Services Regulatory Authority, the Australian Securities & Investments Commission, the French Authority of Financial Control and Resolution, Bank of Japan, Hong King Monetary Authority, MIT Media Lab, Bank of Canada, and several universities.

The event, which took place over the course of two days, discussed regulatory trends, vulnerability issues of blockchain technology, initiatives at a jurisdictional level, the potential of the technology, technical issues that should be kept in mind, standardization of initiatives, regulatory effects on the market and more.

At this time, the FSA of Japan has mentioned that it is actively conducting a study meant to find out more about the vulnerabilities and security issues that blockchain technology may have. While no conclusions have been made yet, it is exciting to see whether the FSA will find any vulnerability in blockchain networks, which are generally deemed as highly-secure and transparent. In the long run, it is possible that these roundtables will provide insight that regulators need to create legislation that will not slow down innovation, but which will ensure that users are kept safe at all times.