Japan:Bitcoin legalization bill drafted and proposed by the Japanese FINANCIAL System Council (FSC) was taken into full effect. According to The Japan Times, the bill was proposed in December of 2015 with the intent of preventing unregulated Bitcoin exchanges like Mt. Gox from mishandling user FUNDS and operating with weak Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.
In 2015, the FSC noted that the proposed bill would require Bitcoin exchanges and service providers to be approved by the country’s largest FINANCIAL regulator the Financial Services Agency before offering services to the public. The approval process entails an extensive overview of KYC and AML systems.
Since then, the FSC has been collaborating with the Financial Service Agency and other lawmakers to draft appropriate and practical regulatory frameworks for Bitcoin exchanges and companies in order to recognize Bitcoin as a legal payment method within the country. On April 1, the bill was activated and Japan officially recognized Bitcoin as a legal tender.
The government of Japan’s move to legalize and regulate bitcoin could set a precedent internationally among nations looking to work digital currency regulation into their respective legal and FINANCIAL systems.