Is There a Truth in Japanese Government Role in Crypto Investigation?

Is There a Truth in Japanese Government Role in Crypto Investigation?

Is There A Truth In Japanese Government Role In Crypto Investigation?

One of the main reasons that cryptos are getting the increased threat of investigation is mainly due to the unregulated nature of it though efforts are now in full swing to reverse the situation. However, that did not prevent news flowing about the non-registered digital coin exchange In Japan getting caught with investigators. As a result, its Internal Affairs Minister, Seiko Noda, has to come out with a clarification saying that there is no truth about the government involvement. However, reports provide a different picture.

Reasons behind It

There are reasons to believe as to why investigators are probing into non-registered cryptocurrency exchange. The Financial Services Agency (FSA) grew suspicion about a Tokyo-based firm violating the regulations in January. This has made the regulator seek a written response from the unregistered digital coin exchange about the concerns expressed by it. The FSA has given a deadline for response, and if the company failed to respond by then, it would lead to an investigation. That would mean taking further steps in the matter, according to a report cointelegraph.

If the reports are true, the internal affairs minister’s office has reached out the regulator after it issued a warning to the unregulated virtual asset exchange. The office has sought an explanation as to what has happened in the case. The reaction of Noda came after reports emerged about her office holding a meeting with the regulator in the presence of the representative of the unregistered exchange firm. However, the minister denied that there was any pressure on the FSA investigation.

On the other hand, she clarified that her office held a meeting with the FSA mainly to get an overall picture of the digital currency exchanges. Noda also stated that there was no vested interest in the company due to the warning issued. Therefore, she thinks that the meeting cannot be interpreted as exerting pressure on the regulator and pointed out that she was not present during the meeting.

However, a senior official of the FSA is not ready to accept such clarification and reiterated that the meeting was nothing but pressure tactics. Reports suggested that on January 30, FSA official has met Noda office and explained the position from the regulatory angles on funds raised with the help of digital currency. The company representative was also present at that point in time.

Exerting Pressure

The senior official disclosed that it is quite natural that if a person attached to a cabinet minister seeks a meeting where the representative of the employee is also present, then it is nothing but exerting pressure on a public servant. The sharp reaction has obviously made the internal minister to admit the presence of her aide during the meeting.

She said, “My aide and the employee of the company know each other. Since we received a request for details of the regulations concerning cryptocurrency exchanges, we arranged [for a meeting with the agency]. I was not aware of the agency’s warning against the company.” Incidentally, the government has replaced the existing Inspection Bureau with the newly established Strategy Development and Management Bureau. This will help create a policy towards managing the issues of cryptocurrencies market.