Japanese companies in the digital currency business have launched an industry group for self-regulation with the support of Prime Minister Shinzo Abe.
The new 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.
A member of Abe’s Liberal Democratic Party (LDP), Mr. Fukuda, stated: "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."
The LDP had previously asked the country’s crypto-currency companies to create their own governing body.
Earlier this year, the Japanese authorities had decided not to impose regulation on Bitcoin, despite the collapse of the digital currency exchange MtGox in March 2014, following an alleged loss of BTC744,000 ($430m).
After Japan’s Financial Services Agency started to work on regulation, the proceedings stopped in June. At the time, Takuya Hirai, a lawmaker running the LDP’s internet media division, commented:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
"Basically, we concluded that we will, for now, avoid a move towards legal regulation."