According to the Japanese regulator, the country needs to develop more convenient access for investing in cryptocurrencies, as well as conduct explanatory conversations with the population about the risks of this area. Commissioner of the Financial Services Agency Junichi Nakajima noted in an interview that Japan is currently using bitcoin and other altcoins more for speculation and investment than as a fast and cheap method of settlement. New challenges are emerging from the wider proliferation of decentralized finance firms known as DeFi, he said. "We need to think carefully about whether we need to make it easier for the general public to invest in crypto assets," said Nakajima, 58, who became the commissioner of the Financial Services Agency last month.
Nakajima believes that, unlike stocks, cryptocurrency has no underlying assets and therefore is subject to strong price fluctuations. This is one of the reasons the Japanese regulator does not allow cryptocurrency investment funds, which are considered an easy way for the public to access this asset class.
Unlike the US, where investors now have a variety of ways to invest in a burgeoning asset class, Japan is still severely constrained by comparison. According to recent reports, the Japanese FSA has set up a research group of external experts that will prepare a report in the coming months and consider regulatory options for DeFi-related companies. Nakajima also noted that any investor can contact the FSA for clarification of the risks that may be assigned to him when investing in the cryptocurrency market. It is worth noting that the new head of the FSA previously participated in the development of Japan's first regulatory framework for cryptocurrency assets, including requirements for registration of exchanges. After the massive theft of coins and the hacking of the Tokyo exchange Coincheck Inc. in 2018, the requirements in the country have tightened. The main focus is now on customer protection and guarantee from deposits. Nakajima noted that the current regulatory framework for crypto exchanges is effective in protecting customers and fighting money laundering, but many of the 31 listed exchanges are struggling financially.
Let me remind you that the head of the US SEC Gary Gensler recently spoke about stricter regulation of the cryptocurrency sphere, and in particular of cryptocurrency exchanges. "Regulation of cryptocurrency exchanges is perhaps the easiest way for governments to quickly deal with the shadow trade of digital tokens. However, a new way of investing through decentralized platforms with the help of DeFi is already causing problems," Gensler said in a recent interview.
Meanwhile, the growth of bitcoin and other altcoins continues. According to the latest data, the outflow of bitcoins from centralized exchanges reached November indicators - this may indicate a decrease in potential pressure on the cryptocurrency rate and contribute to its further strengthening. As for the technical picture of bitcoin, buyers need to break above the resistance of $46,700. Only this will allow them to gain the upper hand over the 200-day moving average and continue the growth of bitcoin to the highs of $52,000 and $58,000. If the bulls fail to take the above level, a second instant sale to the levels of $41,100, $36,700, and $33,300 is not excluded. But don't underestimate the cunning of the market. There were similar attempts to return the bull market in January-February 2018, after the largest bitcoin sell-off, and all these "bull markets" were engaged only in delaying new "onlookers" who wanted to earn extra money quickly, after which the largest drains took place. History will likely repeat itself this time as well, as everything points to just that.
