The First Rejection
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, 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’s 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 run a crypto exchange while its program with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the bureau said recently that 8 of them have indicated 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 businesses are working to enter the space including Line Corp Yahoo! Japan, and CoinbaseTrusted 7bitcasino review 7bitcasino best casino bitcoin bonus >Suspended with Corrective Orders
Besides FSHO is the other crypto market in Japan to receive two penalty orders from the FSA. The first was on March 8 and the second.
In the March order, the agency issued the company a business improvement order and suspended all of FSHO’s businesses related to cryptocurrencies from March 8 to April 7. The business was advised to fix 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
In the April order, the bureau issued another business improvement order and suspended all operations relating to cryptocurrencies of the company from April 8 to June 7.
This order includes five business improvement areas, some of which were just like those in the first order. One of 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 adjustments to the agencycasino reviews the games bitcoin casino review sites on its review, the FSA found that”the exchange did not sufficiently 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 due to end Thursday, after which the agency deny its registration and will bar the exchange from working.
What do you think about the FSA finally rejecting a crypto exchange enrollment? Let us know in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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