Japan Internal Affairs Minister Denies Ties with Cryptocurrency Firm under Investigation

The internal affairs minister of Japan, Seiko Noda, has denied any involvement with a cryptocurrency firm that is currently being investigated by the Financial Services Agency. The Japanese news agency, Asahi Shimbun has recently reported that Noda refused to give credence to allegations that she may be meddling in the investigation
into the operations of the firm. The firm in question is being charged for operating as a cryptocurrency exchange without requisite permissions to do so and an involvement of a cabinet minister in this issue could spell doom for an unbiased inquiry.  Noda has noted that an aide of hers was present at the meeting where the Financial Services Agency (FSA) voiced its approach towards crypto regulations.

Although Noda has denied having a vested interest in the accused firm from Tokyo, her office demanded a brief on the issue after the FSA sent a notice to the crypto firm. Thereafter, the FSA officials attended a meeting with a Noda aide to detail their standpoint on the same. This attention by the internal affairs minister’s office can be
interpreted as pressuring the investigation agency but Noda claimed that she was not aware that the FSA was investigating the crypto firm. She passed off the meeting as a mere administrative discussion on regulations.

In the wake of these allegations and denials, on 19th July, the government of Japan has announced that the FSA has recently undergone certain changes in positions and there had been a reshuffle in the body. The government added that the goal was to make sure the organisation was better adapted to the needs of regulating a modern
economy. A Strategy Development and Management Bureau has been created to work in place of the Inspection Bureau. This new entity is expected to develop a policy for financial strategy and also address issues concerning virtual currencies, money laundering fintech firms and so on.