According to leading outlines in a news outlet, over 190 cryptocurrency exchanges have applied for a license with FSA Japan. An unnamed official FSA has confirmed this data Cointelegraph Japan in an interview on 28th December. As the cryptocurrency is getting popular amongst crypto enthusiasts, the crypto exchanges are on the rise in Japan.
The regulatory body is interested in supervising the growth of the emerging crypto industry with proper regulations in order to curb the illegal activities. FSA doesn’t intend to intervene in the operations of the entire crypto world. Therefore, it has granted a self-regulatory status to the local crypto industry and also certified JVCEA to oversee the industry. Japanese Virtual Currency Exchange Association (JVCEA) is expected to furnish anti-money-laundering (AML) policy and develop a framework of guidelines for cryptocurrency exchanges.
Such a license is recently granted to Coincheck, a cryptocurrency exchange. Post a hack at the exchange in January; it received two business improvement orders from FSA. The improvement orders were mainly focussing on setting high standards for money laundering and customer protection. Later in March, FSA sent punishment notice to 7 cryptocurrency exchanges in the nation. In August, the commissioner of Japan’s FSA stated, the agency wishes the cryptocurrency sphere to grow but under proper regulation. He also committed that the agency has no such intentions to ban the crypto industry.
Back in July, FSA has undergone a major remodeling to better deal with Fintech-related fields. The Inspection Bureau got replaced by Strategy Development and Management Bureau, which will furnish a financial strategy policy while handling problems addressing money laundering, cryptocurrencies, and fintech. However, Coordination and Planning agency will be replaced by markets and policy agencies to develop further a legal framework to tackle the swift development of the fintech industry.
After releasing the regulations to report suspicious transactions by cryptocurrency exchanges, National Police Agency of Japan recently reported steep growth in such cases. There have been 5,944 cases between January and October as per NPA analysis.