Constant dialogue and regulatory flexibility are propelling Asia to the forefront of the crypto industry. Meanwhile, most Western countries fall behind them. There are five big Asian countries that regulate cryptocurrency.
Many Asian Countries let cryptocurrency, even if it posseses harms. Take the Japanese, Zaif, cryptocurrency exchange as an example. In late 2018, hackers stole US$ 59 million worth of cryptocurrency from the platform.
Instead of blocking cryptocurrency due to the possible risk, the regulators chose to provide new legislation. They aimed to create a way for more supportive and secure regulatory. Thus, the customers get protection from exchange hack. Here is the detail of how 5 Asian countries regulate cryptocurrency.
India
The Reserve Bank of India (RBI) is the regulator of Indian crypto space. Besides RBI, the Security and Exchange Board (SEBI) and the ministry of finance also contributes to the draft country’s crypto regulation. Now, the draft is in the final stage to be released later this month.
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Japan
Under the amended Payment Service Act, Japan legalized cryptocurrency in April 2017. The main regulator is the Financial Service Agency (FSA). It supervises and conducts oversight of crypto exchange service providers. The providers are required to register their platform. There are now 19 registered providers. Meanwhile, another 140 companies interested to enter the market.
Besides FSA, Japan’s Central Bank and the Ministry of Finance also involve in crypto regulation. The central bank has established a fintech center. Meanwhile, the Ministry of Finance is responsible for supervising and legislating foreign crypto assets trade. They also plan and execute crypto-related taxation.
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South Korea
There are three institutions responsible for crypto regulation in South Korea. They are Financial Service Solution (FSC), Financial Supervisory Service (FSS), and the central bank.
FSS is responsible for oversight, market integrity, and customer protection. Together with FSC, FSS produced the country’s cryptocurrency measure in late 2017. Besides, they also produced the additional guideline in January 2018. In addition, the central bank is responsible to monitor and conduct research on crypto assets.
Singapore
Singapore’s crypto regulator is the Monetary Authority of Singapore (MAS). It regulates activities and institutions conducting activities involving crypto-assets. MAS monitors financial stability and the risks posed by crypto assets.
In addition, it also regulates additional payment activities. It includes digital payment and token services.
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China
Even becoming a hotbed or crypto activities, China banned crypto exchange in 2017. However, now the ban has been lifted. There are five government institutions, besides People Bank of China (PBOC) that regulate crypto-related activities.
The Cyberspace Administration of China monitors online crypto-related activities. The Ministry of Industry and Information prohibits and shut down illegal crypto websites. The Ministry of Public security prohibits illegal and criminal activities. China’s Banking and Insurance Regulatory Commission follow the development of crypto-assets and its risks in China. Lastly, the Security Regulatory Commission combats illegal issues of securities.
