Japan: digital currency businesses launch industry group

Wednesday 9 July 2014 14:33 CET | News

Japanese digital currency companies have launched an industry group for self-regulation with the backing of Prime Minister Shinzo Abe’s ruling party, reports.

Previously, the Liberal Democratic Party (LPD) called on companies in the crypto-currency business in Japan to come up with their own governing body. The LDP recommended that no specific government agency be assigned to oversee the industry at this stage to avoid operators getting stuck in red tape.

The new industry group aims to establish a peer-to-peer monitoring system to ensure security at participating companies and that services are not used for illegal activities such as money laundering.

Local Bitcoin startups complain that banks will not allow them to open accounts. Beside banks, a public relations agency refused to help a Bitcoin company send a press release because Bitcoin may potentially harm customers, according to a correspondence between the two parties, the same source cites.

Mr. Fukuda, member of LDP, states that the reluctant attitude of these organizations is not justifiable since Bitcoin companies are established and operating within the current framework of the law, meaning the risk of criminal activity is no different from the possibility of such activity in any other newborn industry.

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Keywords: Japan, Bitcoin, digital currency, crypto-currency, industry group, regulation, online transactions, Customers, banks
Categories: Payments & Commerce
Countries: World
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Payments & Commerce

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