The First Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto market in the country. “The first time it has done so,” Nikkei reported, including:
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 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 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 bureau said recently that 8 of them have suggested 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 businesses are currently seeking to enter the space including Coinbase, Line Corp, and Yahoo! Japanbitcasino rating >Suspended with Corrective Orders
Besides FSHO is the only crypto exchange in Japan to receive two penalty orders from the FSA. The first was on March 8 and the second on April 6.
In the March order, the agency issued the company a business improvement order and suspended all of the businesses of FSHO linked to cryptocurrencies from March 8 to April 7. The business was told to fix 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 Secondly Suspension
From the April order, the agency suspended all operations regarding cryptocurrencies of the company from April 8 to June 7 and issued another business improvement order.
This order contains five business improvement areas, some of which were just like those in the order. Among new regions 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 changes to the agencybest new bitcoin casino bitcoin online casino free to play 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 customer deposits may be redirected,” Nikkei summarized, adding that:
The suspension period is scheduled to end Thursday, and the agency will bar the exchange from working and deny its registration.
What do you think of this FSA finally rejecting a crypto exchange registration? Let us know in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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