The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto exchange in the country. «The very 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 an exchange operator that it’s found to be substandard, the agency aims to demonstrate its decision 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 program with the FSA is being reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of these have indicated that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Japan has 16 cryptocurrency exchanges that are fully-licensed and about 100 companies are seeking to enter the space including Line Corp Yahoo! Japan, and Coinbasegolden star bitcoin casino bitcoin casino usa players allowed >Suspended with Corrective Orders
Besides Coincheck that was murdered in January, FSHO is the only crypto exchange in Japan to receive two punishment orders. 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 FSHO’s businesses. The company was advised to correct four areas of operations such as to»Construct a position to securely manage user information.» The measures taken were to be submitted to the agency by March 22.
From the April order, the bureau issued another business improvement order and again suspended all operations regarding cryptocurrencies of the business from April 8 to June 7.
This second order contains five business improvement areas, some of which were just like those in the initial order. One of new areas are the»Establishment of an effective management system such as money laundering and terrorist financing» and a risk management system. The company was supposed to report the adjustments to the agencybitcasino review on its review, the FSA found that»the trade did not adequately verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted,» Nikkei outlined, adding that:
The suspension period is scheduled to end Thursday, after which the agency will bar the exchange from operating and deny its enrollment.
What do you think of this 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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