A recent FSA report revealed that 160 new crypto exchanges are planning to enter Japan’s digital currency market. The agency in its report also confirmed the number of existing exchanges that have quit the industry. That leaves the agency with only three applications that are presently being reviewed.
The Financial Services Agency (FSA) is the country’s top financial regulator. All cryptocurrency exchanges in Japan are licensed by it. So far, the regulatory agency has licensed 16 crypto exchanges. Apart from this, the FSA has permitted 16 more companies, including Coincheck, to operate crypto exchanges in the country. The agency is, however, reviewing their applications. These companies under review are often referred to as “quasi-operators” of crypto exchanges.
According to reports, the FSA has stepped up its oversight of crypto exchanges after the Coincheck hack in January 2018. The agency has issued many temporary shutdowns of exchanges apart from issuing business improvement orders to a number of exchanges in the country. A number of quasi-operators began to withdraw their applications and leave the industry as they found the stricter rules difficult to comply.
After the hack in January, Monex Group acquired the Coincheck exchange. The FSA meanwhile has refused to comment on the status of Coincheck’s application. Monex, on the other hand, is quite hopeful that the exchange will be approved in September.
On-Site Inspections Of 23 Exchanges
The FSA has performed 23 on-site inspections of major digital exchanges in 2018. The FSA has not authorized any new crypto firms this year to operate in Japan, as per a report released by the FSA.
A few members of the Japanese crypto community are speculating that the agency is no longer reviewing applications from local exchanges, as mentioned in the CryptoGlobe report. The agency has however clarified that there is no truth to this.
The FSA revealed in its report that around 100 companies were keen in applying for a license in July so that they could operate a crypto exchange. Yahoo! Japan and Line Corp were also a part of this list of 100 companies, as stated in the Bitcoin News report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]