Japan Beats on Bitcoin
Main page News, Japan, Cryptocurrency exchanges

The Japanese financial regulator has for the first time refused to authorize a licence for a crypto-exchange platform.

The Financial Services Agency (FSA) has rejected the registration of the cryptocurrency exchange FSHO. An inspection of the company has revealed that the Yokohama-based firm does not possess the necessary systems required to manage its business.

Why it is important

  1. The first FSA refusal demonstrates that Japanese regulators remain firm on ensuring the financial sector remains healthy. Japan may start to see regulation tightening as the most effective tool to assess control.
  2. Сryptocommunity is sensitive to regulatory changes. The change may affect the prices and exchange rates of cryptocurrencies.

Currently, 16 crypto exchanges are licensed to operate in Japan, with 8 of them set to withdrawn their applications. The FSHO was completely discontinued on June 7. Earlier, FSA has forced the exchange to suspend its work on two separate occasion.

The office found that “the exchange did not sufficiently verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted,” Japans stock exchange Nikkei summarized.

The Japanese regulator’s decision states that on Thursday, June 7, the work of FSHO will be terminated. The license was withdrawn since the exchange failed to comply with the conditions imposed after the latest suspension.

A few days ago Coinbase, the largest American crypto exchange announced its plans to open subsidiary operating in Japan. Coinbase intends to apply to FSA for a necessary license, since this process is compulsory for all organizations involved in cryptocurrencies transactions.

Also in June, it became known that the HitBTC exchange has suspended its operations in Japan after failing to obtain a permission to operate from the FSA. To its users with Japanese IP addresses, the exchange will offer to participate in a ‘know-your-customer’ (KYC) verification process in order to prove that they reside in Japan.

By Ekaterina Ulynova

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