The Initial Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto exchange in the country. “The very first time it has done so,” Nikkei reported, including:
The decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to run its business…By barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its decision to re-establish a solid currency trading environment in Japan.
FSHO is a”deemed dealer” or”quasi-operator” of cryptocurrencies in Japan, meaning it’s been allowed to run a crypto exchange while its program with the FSA has been reviewed. There are 16 deemed dealers. However, the agency said recently that 8 of them have indicated that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Japan has 16 cryptocurrency exchanges and about 100 companies are currently seeking to enter the space including Coinbase, Line Corp, and Yahoo! Japan >Suspended with Corrective Orders
Besides FSHO is the other crypto exchange in Japan to receive two punishment orders. The first was on April 6 on March 8 and the second.
In the March order, the agency suspended all of FSHO’s businesses linked to cryptocurrencies from March 8 to April 7 and issued the company a business improvement order. The company was advised to fix four areas of operations such as to”Build a position to safely manage user information.” The improved measures were to be submitted to the agency by March 22.
Rejection to Follow Secondly Suspension
From the April order, all operations regarding cryptocurrencies of the business from April 8 were again suspended by the agency and issued another business improvement order.
This second order includes five business improvement areas, some of which were just like those in the order. One of new areas are the”Establishment of a successful management system including money laundering and terrorist financing” and a risk management system. The company was supposed to report the adjustments to the agencyonehash site on its review, the FSA found that”the exchange did not adequately verify the identity of customers in trades where crime is suspected, or in cases where customer deposits may be redirected,” Nikkei outlined, adding that:
The suspension period is due to end Thursday, and the exchange will be barred by the agency and deny its registration.
What do you think of the FSA finally rejecting a crypto exchange registration? Tell us in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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