Japan Tightens Crypto Oversight Amid Cardano Governance Challenges
Japan Tightens Crypto Oversight Amid Cardano Governance Challenges
Japan's Financial Services Agency is reportedly drafting new regulations to increase oversight on companies providing management systems to crypto exchanges, requiring prior notice or registration. Meanwhile, the Cardano network has experienced its first 'governance shutdown' as its Constitutional Committee fell below the required number of members, prompting a response from Charles Hoskinson and raising questions about decentralized governance stability.
Regulatory Scrutiny Intensifies in Japan's Crypto Sector
In a move to enhance investor protection and market stability, Japan's Financial Services Agency (FSA) is preparing to introduce stricter rules for companies that offer management systems to cryptocurrency exchanges. These proposed regulations would mandate that such companies provide prior notice or officially register before commencing operations. This initiative underscores a global trend towards tighter regulatory frameworks for the digital asset industry, aiming to mitigate risks associated with market volatility and operational security.
Cardano Network Grapples with Initial Governance Shutdown
The Cardano blockchain has encountered a significant challenge with its first-ever 'governance shutdown.' Reports indicate that the network's Constitutional Committee (CC) has fallen below its required seven members, following a formal retirement notice from a seated member. This event has led to concerns about the functionality and resilience of Cardano's on-chain governance model, triggering discussions within the community and prompting a direct response from Cardano founder Charles Hoskinson as the network navigates this uncharted governance territory.