Japan to have regulatory mechanism for digital currency by 2016
Japan needs a more suitable oversight mechanism for digital currencies, including ways to confirm identities and block money laundering, according to a group of Financial Services Agency (FSA) panel members. Invited by the country's Financial Services Council, the panel, made of operators of virtual currency exchanges, also highlighted the need for registering exchanges and protecting customer assets. In Japan, there are tens of thousands of Bitcoin users, and about one in ten locations, mostly restaurants, accept the cryptocurrency. Around JPY 20bn ($161m) are reportedly traded daily and each share is currently valued at around $400. The FSA plans to establish a regulatory mechanism as early as 2016.

TOKYO -- Japan needs an adequate oversight mechanism for virtual currencies, including ways to confirm identities and block money laundering, Financial Services Agency panel members agreed in a meeting Monday.

The Financial Systems Council invited operators of virtual currency exchanges to share their knowledge and regulatory ideas.