The Initial Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto market in the nation. “The very first time it has done so,” Nikkei reported, including:
The decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to run its business…By barring a market operator that it’s 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 market while its program with the FSA has been reviewed. There are 16 deemed dealers. However, the bureau 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 fully-licensed cryptocurrency exchanges and about 100 businesses are working to enter the space including Coinbase, Line Corp, and Yahoo! JapanBitcoin Lottery rating >Suspended with Corrective Orders
Besides FSHO is the other crypto market in Japan to receive two penalty orders from the FSA. The first was on March 8 and the second.
In 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”Build a position to safely manage user information.” The measures were to be submitted to the agency by March 22.
Rejection to Follow Secondly Suspension
From the April order, all operations regarding cryptocurrencies of the business from April 8 were again suspended by the bureau and issued another business improvement order.
This order includes five business improvement areas, some of which were just like those in the initial 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 changes to the agencyBitcoin Lottery review on its review, the FSA found that”the trade did not adequately 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 due to end Thursday, and the agency deny its registration and will depart the exchange.
What do you think of this FSA finally rejecting a crypto exchange registration? Tell us in the comments section below.
Pictures courtesy of Shutterstock, FSHO, and Nikkei.
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Source: bitcoincasinoreview.net
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