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 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 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’s been allowed to operate a crypto exchange while its application with the FSA is being reviewed. There are 16 deemed dealers altogether. However, the bureau said recently that 8 of these have suggested that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Japan has 16 cryptocurrency exchanges and approximately 100 companies are working to enter the space including Line Corp, Yahoo! Japan, and Coinbasebitcoin casino free bonus casino accept bitcoin via visa gift card >Suspended with Corrective Orders
Besides Coincheck that was hacked in January, 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.
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 securely manage user information.” The measures were to be submitted to the agency by March 22.
Rejection to Follow Second Suspension
From the April order, all operations regarding cryptocurrencies of the business from April 8 were suspended by the bureau and issued another business improvement order.
This second order contains five business improvement areas, some of which were the same as those in the order. Among new regions are the”Establishment of a successful management system such as money laundering and terrorist financing” and a risk management system. The business was supposed to report the adjustments to the agencyBitcoin Lottery review 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 diverted,” Nikkei outlined, adding that:
The suspension period is scheduled 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? Let us know in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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