Japan’s Financial Services Agency (FSA) issued a report on September 3 indicating a decrease in crypto-related inquiries during the latest quarter. Only 494 crypto inquiries were submitted to the FSA office in the second quarter ended June 30.
The number of inquiries decreased from 574 recorded in the first quarter ended March 30, dropping a total of 13.9%. In the meantime, 89 cases of illegal investment offers were reported to the FSA.
FSA Instigates AML Sweeping Program
It has been reported that the data suggests the investors of Japan who are losing interest in cryptocurrencies. However, there has been speculation that the decline is a result of the FSA’s recent crackdown on crypto exchanges.
This move is a part of the FSA’s anti-money laundering protocols which aimed at prosecuting crypto exchanges that offer anonymous transactions or do not require enough user identity information. Japan is reportedly attempting to address issues of money-laundering and hacking that have been general in the world’s third-largest economy.
Anthony Pompliano Confirm FSA Advocates Bitcoin
Anthony Pompliano, known as a Bitcoin Evangelist, tweeted about the FSA’s attitudes towards Bitcoin, saying that “Japan’s Financial Services Agency is a big proponent of Bitcoin and Lightning Network.”
Pompliano argued that he held discussions with FSA executives in Japan and insisted that the agency “wants to see Bitcoin and Lightning Network succeed.”
He also tweeted, “They have a fairly clear regulatory framework, they want to see Bitcoin/LN succeed, they specifically told me that they think open networks will win, and they are hoping to be a world leader in adopting both aspects of the tech.”