The Initial Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto exchange in the country. “The first time it has done so,” Nikkei reported, adding:
The decision follows the ministry’s decision that Yokohama-based FSHO lacks the necessary systems to run its business…By barring a market operator that it’s found to be substandard, the agency intends to demonstrate its determination to re-establish a sound currency trading environment in Japan.
FSHO is a”deemed dealer” or”quasi-operator” of cryptocurrencies in Japan, meaning it has been allowed to operate a crypto market while its application with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of them have suggested that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Meanwhile, Japan has 16 cryptocurrency exchanges that are fully-licensed and approximately 100 companies are currently seeking to enter the space including Yahoo! Japan, Line Corp, and Coinbasebitcoin casino with free play mode bitcoin casino with mine >Suspended with Corrective Orders
Besides FSHO is the only crypto market in Japan to receive two penalty orders from the FSA. The first was on March 8 and the second on April 6.
From the March order, the agency issued the company a business improvement order and suspended all of the businesses of FSHO related to cryptocurrencies from March 8 to April 7. The company was told to correct four areas of operations such as to”Construct a position to safely manage user information.” The measures were to be submitted to the agency by March 22.
Rejection to Follow Second Suspension
In the April order, the bureau issued another business improvement order and again suspended all operations regarding cryptocurrencies of the company from April 8.
This second order contains five business improvement areas, some of which were the same as those in the order. One of new areas are the”Establishment of an effective management system including money laundering and terrorist financing” and a risk management system. The company was supposed to report the adjustments to the agencybitcoin casino for sale no deposit bitcoin casino bonus on its review, the FSA found that”the exchange did not sufficiently verify the identity of customers in trades where crime is suspected, or in cases where consumer deposits may be diverted,” Nikkei outlined, adding that:
The suspension period is due to end Thursday, after which the agency deny its registration and will depart the exchange.
What do you think about this FSA finally rejecting a crypto exchange registration? Tell us in the comments section below.
Pictures courtesy of Shutterstock, FSHO, and Nikkei.