Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Friday, March 4, 2016, 9:48 am to 9:53 am)

[Opening remarks:]

The Cabinet today approved a bill that the Financial Services Agency intends to submit to the Diet: the Bill for the Partial Revision of the Banking Act, etc., to Address Advances in Information Technology and Other Changes (note: the official English appellation will be announced later). As you know, this bill seeks to put legal framework in place to address the advances made by information technology in the field of finance. With finance and IT becoming increasingly integrated, it is urgent that we ensure Japan’s financial institutions are capable of coping strategically with such environmental changes. We also need, in light of the G7 Leaders’ Declaration in Elmau, to promptly establish legal systems governing virtual currencies.

[Questions and answers:]

Q.

How will the world of virtual currencies change with the passage of legislation on Bitcoin and, recalling the Mt. Gox bankruptcy two years ago, will this legislation guarantee users’ security? I would appreciate your opinions on these.

A.

It has been pointed out that the virtual currencies such as Bitcoin are being used to fund terrorism, so the G7 needs to put rules in place to counter such financing of terrorism. In Japan, too, one of the world’s largest dealers in virtual currency at the time went bankrupt here in Japan the year before last. Given that, we think it important to take appropriate steps to protect users and prevent illegal use by implementing the legal measures incorporated into this bill. We would most certainly like to see the Diet pass this bill by the time the G7 Summit is held in late May.