Japanese Financial Systems Council discusses new bitcoin rules

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

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

The meeting also touched on the need for registering exchanges and protecting customer assets. Participants also noted Japan’s position of imposing consumption taxes on bitcoin trading.

The agency plans to introduce a regulatory mechanism as early as next year in response to the oversight vacuum exposed by the arrest of MtGox chief Mark Karpeles, who ran what was once the world’s largest bitcoin exchange.