Japan, which is known for its innovations and hard working capability have now regulated its virtual currency. Japan’s law regarding virtual currency after Japan had found themselves as the part of the very famous multi million fraud sacandal in which Tokyo based MtGox Bitcoin exchange got collapsed was a important step to be taken.
This company once was the largest and most established exchanges for the crypto currency company,MtGox which got collapsed in 2014 badly as half of a billion dollar theft got suspected which banged down the reputation of digital currency.
Virtual currency regulated by Japan’s Financial Services Agency
On Wednesday, lawmakers of Japan passed a bill which says that all the virtual currency exchanges should be administered by the Japan’s Financial Services Agency. Japan’s government has given definition to the virtual currency as the thing which has asset like nature and can be exchanged with respect to goods and services.
All the digital currency exchanges in the country must be registered with the financial watchdog which will verify the customer’s identity of the customer’s who wants to open account. According to Japan’s Financial Service Agency a new enactments is going to be passed which will aim to tackle issues of project users and money laundering.
According to critics of this virtual money movement , lack of administration and anonymity makes it beneficial for the criminals to use this currency. Other group of 7 countries called as G7 which includes Germany, Japan, US, Uk ,Canada, France, Italy have either passed enactment or are in process after the meeting of 2015 in which voice was raised in support of proper regulations of virtual currency.
Bitcoin is generated by the interactions of complex chains between vast networks of the systems. Its not like the currencies aided by the government or by central government. Promoters of this movement says that concept of virtual money will allow anonymous store and transfer of the funds online. This new law has came into existence when the Prosecutors in previous year had charged MtGox France based company’s head Mark Karpeles with fraud over the disappearance of hundreds of millions dollar of virtual currency.
This France based company MtGox got shattered when they accepted that $480 million have disappeared from its digital value. The company which handled 80% of the global transactions of bitcon filed for bankruptcy protection as Cyber money went missing leaving many investors questoining.
Company at frist said that their was a bug in their software underpinning bitcon which helped the hackers to swipe them. Head of the company later said that they have found some 200000 coins in their cold wallet which is used as a storing device which is not connected to other computers.
Investors later demanded to publicize the data by firm’s court appointed administrators so that experts around the worls could help to reveal what had happened in the company. But case was so complex to the police that it could’t be examined clearly because their was no Virtual currency’s law in Japan.