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Japanese Financial Regulator Receives 190 Crypto Exchange License Applications

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As per an unnamed staff member of FSA told Cointelegraph, the Japanese Financial Services Agency (FSA) has received 190 cryptocurrency exchange license applications in recent days. The FSA has already given the local crypto industry a self-regulatory status, certifying the Japanese Virtual Currency Exchange Association (JVCEA) to manage and oversee the space. The JVCEA may soon develop anti-money laundering policy and guidelines for crypto exchanges. A license was recently granted to cryptocurrency exchange Coincheck, following a hack at the exchange in January. It has received two business improvement orders from the FSA which mainly focused on setting higher standards for anti-money laundering measures and customer protection.

The FAS has also sent punishment notices to seven crypto exchanges in March. The commissioner of Japan’s FSA sais in August that “the agency wish the crypto industry to grow under appropriate regulations with no intention to curb the crypto industry excessively.” In this year July, the agency underwent a major overhaul in order to better deal with fintech related fields, which also includes cryptocurrencies. The Inspection Bureau has been replaced with the Strategy Development and Management Bureau and soon will develop a financial strategy policy and handle issues addressing the money laundering, fintech, and digital currency market.

The Planning and Coordination Bureau will be succeeded by the Policy and Markets Bureau, which is tasked with developing a legal framework that addresses the rapid growth of the fintech sector. After the implementation of regulations that requires cryptocurrency exchanges to report suspicious transactions, the Japanese National Police Agency has reported a steep increase in such reports. According to the Japanese National Police Agency report, a total number of 5,944 such reports have been submitted between January and October month of 2018.

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