Peer-to-peer (P2P) transactions sometimes complicate ongoing markets. Such transactions are prohibited in some countries. Now Japan is going to join that list. Japan's Financial Services Agency (FSA) recently revealed that it is looking into banning peer-to-peer transactions in digital currencies. Because it involves criminal activities.
In particular, various criminal transactions including illegal transactions or financing of terrorism are carried out. Hence the country's regulatory body feels that the number of fraudulent transactions is the highest among these types of transactions. And such peer to peer transactions mostly involve crypto assets FSA offers several measures to protect users from illegal transfers. Because they feel that such transactions complicate the market system.
So the company is thinking of stopping such transactions to stop the criminal transactions and to provide protection to the customers. As such, the FSA and the National Policing Agency (NPA) are calling on banks to strengthen the protection of their users. They want to ensure the protection of users and have called for the FSA and NPA to work together to achieve that goal and are pursuing a number of key initiatives. One of them directed banks to step up monitoring of illegal transfers to cryptoasset exchange service providers.
For example, transactions on P2P platforms have been outlawed in many countries especially because of the occurrence of such criminal activities. Moreover, all users involved in such transactions know one thing that such transactions require mechanics. These mechanics essentially work to always distinguish the sender and receiver names on the fiat and crypto ends of the transaction. So it is said that if the banks in the country involved in such transactions reject transactions from one's bank account to another's crypto wallet. If such transactions are rejected, it could seriously jeopardize the P2P market.
The country is already very cautious when it comes to overseeing digital assets and is well known for its cautious approach. Such visions are developed and such visions ensure strict compliance with the evolving regulatory framework. But an important point here is that the country has taken several initiatives in the field of digital currency and one of the latest initiatives was their tax reform for this year. And one of their initiatives is that from April 1 this year, Japanese companies will not have to pay tax on unrealized profits. That is, companies do not have to pay taxes on unrealized gains from the cryptocurrency they hold. Earlier last year there was an unrealistic tax on the tokens or coins that the companies held. Last year, companies were exempted from paying 30 percent tax on those unrealized profits.
Peer-to-peer transactions are the most commonly associated with crypto. But to be honest, such transactions are sometimes more criminal in various exchanges. To be honest I have heard from many people who complete such transactions not to refund their money. Moreover, such transactions are completely prohibited in our country. However, the regulatory body will take steps to implement the steps taken by the Japanese government. Especially interested in taking such steps to provide protection to customers or users and stop illegal transactions. Anyway to know more details about this you can read this news