Japan's financial regulator has urged regulators around the world to treat encryption algorithms like commercial banks and called for stricter standards in the field.

According to Mamoru Yanase, deputy director of strategic planning and management of the Financial Information Services Bureau, passwords must level off.

'If you like to implement efficient regulation, you have to do it like supervising and directing traditional organizations,'he said in a report by Bloomberg News on January 17.

Japan's financial regulator made the comments after the collapse of FTX in November last year, which caused anxiety across the market and sparked the urgency of regulatory action.

Unlike some of its American counterparts, Yanagawa's recognition problem is not the password. "it is not cryptographic technology itself that is causing a whole new scandal," he said, adding that obligations depend on "casual crackdowns, lax internal control systems and their lack of supervision and guidance".

He said regulators in the United States and Europe have been urged to apply the same rules to password trading centres as they do to banks and securities firms.

This proposal has been based on the Financial Stability Board, a worldwide body responsible for regulating the digital currency industry.

Yanase added that countries around the world "must be unswervingly regulated" that password trading centers adopt customer protection measures. It also puts forward requirements for avoiding money laundering, strong rectification, internal control system, financial audit and publishing password artist companies.

Yanagazawa is confirming that the Japanese branch of FTX is expected to gradually repair it from February.

"We have been actively communicating with FTX Japanese companies," Yanazawa said. "the property of the customer has been properly separated from the branch," he explained.

The American people's court that tried the FTX case allowed the sale of FTX Japan and other corporate subsidiaries. Last week, Cointelegraph reported that 41 companies were interested in taking back the exchange's Japanese subsidiaries.

On Jan. 16, MonexCEOOki MatSumoto made it clear that it was interested in recycling FTX Japanese companies, adding that it would be "very happy" for the financial investment company if local industry competition were reduced.