The Initial Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto exchange in the country. “The 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 a market operator that it has 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’s been allowed to operate a crypto market while its application with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of them have suggested 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 about 100 companies are working to enter the space including Line Corp, Yahoo! Japan, and CoinbaseBetcoin scam >Suspended with Corrective Orders
Besides FSHO is the other crypto exchange in Japan to receive two penalty orders from the FSA. 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 linked to cryptocurrencies from March 8 to April 7. The business was advised to correct four areas of operations such as to”Build a position to safely 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 again suspended all operations regarding cryptocurrencies of the business from April 8.
This second order contains five business improvement areas, some of which were the same as those in the initial order. One of new regions are the”Establishment of an effective management system including money laundering and terrorist financing” and a risk management system. The company was supposed to report the adjustments to the agency by May 7Btc casino review bitcoin casino top on its review, the FSA found that”the trade 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, after which the agency will depart the exchange from operating and deny its registration.
What do you think of the FSA finally rejecting a crypto exchange enrollment? Let us know in the comments section below.
Pictures courtesy of Shutterstock, FSHO, and Nikkei.
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