The First Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto exchange in the nation. «The very 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 aims to demonstrate its decision to re-establish a sound currency trading environment in Japan.
FSHO is a»deemed dealer» or»quasi-operator» of cryptocurrencies in Japan, meaning it has been allowed to operate a crypto exchange while its application with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of these 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 businesses are working to enter the space including Coinbase, Line Corp, and Yahoo! Japanbitcoin casino mobile app iphone anonymous bitcoin casino no dep bonus >Suspended with Corrective Orders
Besides Coincheck which was hacked in January, FSHO is the only crypto market in Japan to receive two penalty orders from the FSA. The first was on April 6 on March 8 and the second.
In the March order, the agency suspended all of FSHO’s businesses related to cryptocurrencies from March 8 to April 7 and issued the company a business improvement order. The company was advised to correct four areas of operations such as to»Construct a position to securely manage user information.» The measures taken were to be submitted to the agency by March 22.
Rejection to Follow Second Suspension
From the April order, all operations relating to cryptocurrencies of the company from April 8 were again suspended by the bureau and issued another business improvement order.
This order contains five business improvement areas, some of which were just like those in the initial 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 business was supposed to report the changes to the agencybitcoin casino pay with debit card bitcoin welcome casino bonus on its review, the FSA found that»the trade did not adequately verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be redirected,» Nikkei summarized, adding that:
The suspension period is due to end Thursday, and the agency will bar the exchange and deny its enrollment.
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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