Japan goes a step further with its relationship with the cryptocurrency trade as the Central Bank publishes a negative question and answer guide for those seeking information about the markets.
BoJ publishes negative questions and answers for the general public
The question and answer page translated from Japanese as “Let’s think about the cryptocurrency” was published in a financial education site administered by the Bank of Japan. The page that is addressed to the general public responds to broad questions such as ‘is cryptocurrency money’, ‘normal people can take advantage of them’ and the ‘likelihood of being stolen’.
It was reported that the page appeared after Japan’s financial delegates returned from the meeting of the Group of 20 countries in Davos, Switzerland, last month, where it was discussed whether the cryptocurrency could destabilize financial markets.
The questions and answers of the BoJ explain what the cryptocurrency is, how the currencies are bought and sold in the exchanges, and what the country’s regulations are, but they also explain that there is no central bank for digital currencies. Eventually, he asks the question,
“Should not we ban something we really do not understand?”
The Central Bank responded to its own hypothesis here by saying that although cryptocurrencies have not yet fulfilled the ideals of their creators, the underlying blockchain technology may still have the potential to greatly improve people’s lives.
Japan struggles with regulatory balance
The questions and answers come about because the Japan Financial Services Authority is still struggling to create a balance between regulation and consumer freedom in the cryptocurrency market.
Japan was one of the first countries to create a legal framework for cryptocurrency trading platforms and has enjoyed booming financial success in the industry, but has recently gone through a period of regulatory growth pains.
After the second largest piracy in the cryptocurrency history when $ 500 million in digital assets were stolen from the Coincheck exchange, the FSA has created new regulatory guidelines, and sent a round of official warnings to the exchanges and even suspended some of doing business.
The question and answer sheet of the BoJ could have been bad news for cryptomeries in general, since it assumed a rather negative view of the entire cryptocurrency ecosystem. However, the first operations in Asia on Tuesday showed a slight rebound in prices, with the exchange of Bitcoin above 6% and the rest of the main digital currencies in the green at the time of writing.