The First Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run 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 operate 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 solid currency trading environment in Japan.
FSHO is a”deemed dealer” or”quasi-operator” of cryptocurrencies in Japan, meaning it has been allowed to run a crypto exchange while its application 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 approximately 100 businesses are currently seeking to enter the space including Line Corp Yahoo! Japan, and Coinbasebitcoin casino how it works best bitcoin casino to deposit >Suspended with Corrective Orders
Besides Coincheck which 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 FSHO’s businesses all 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 enhanced measures were to be submitted to the agency by March 22.
Rejection to Follow Secondly Suspension
In the April order, the agency issued another business improvement order and again suspended all operations regarding cryptocurrencies of the company from April 8.
This order contains five business improvement areas, some of which were just like those in the order. Among new areas are the”Establishment of an effective management system including money laundering and terrorist financing” and a risk management system. The business was supposed to report the adjustments to the agency by May 7mBit bitcoin casino on its review, the FSA found that”the exchange did not adequately verify the identity of customers in trades where crime is suspected, or in cases where consumer deposits may be redirected,” Nikkei outlined, adding that:
The suspension period is scheduled to end Thursday, after which the agency will depart the exchange and deny its enrollment.
What do you think of the FSA finally rejecting a crypto exchange enrollment? Tell us in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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