noviembre 13, 2017 | Posted in:Blog

The Initial Rejection

The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto exchange in the nation. «The 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 operate its business…By barring a market operator that it has found to be substandard, the agency intends to demonstrate its determination to re-establish a solid currency trading environment in Japan.

FSHO is a»deemed dealer» or»quasi-operator» of cryptocurrencies in Japan, meaning it’s been allowed to run a crypto exchange while its program with the FSA is being reviewed. There are 16 deemed dealers. However, the bureau said recently that 8 of them have suggested that they will withdraw their applications and best bitcoin live casino online with manual flushing.

Japan has 16 fully-licensed cryptocurrency exchanges and approximately 100 businesses are seeking to enter the space including Line Corp Yahoo! Japan, and Coinbasefree play bitcoin casino forum bitcoin casino slots showcase >Suspended with Corrective Orders

Besides Coincheck that was hacked in January, FSHO is the other crypto exchange in Japan to receive two penalty orders from the FSA.  The first was on March 8 and the second on April 6.

From the March order, the agency issued the company a business improvement order and suspended all of FSHO’s businesses. The business was told to fix four areas of operations such as to»Build a position to safely manage user information.» The enhanced measures taken were to be submitted to the agency by March 22.

Rejection to Follow Second Suspension

In the April order, the bureau suspended all operations relating to cryptocurrencies of the company from April 8 to June 7 and issued another business improvement order.

This order contains five business improvement areas, some of which were the same as those in the order. One of new regions are the»Establishment of an effective management system such as money laundering and terrorist financing» and a risk management system.  The business was supposed to report the adjustments to the agencyoshi rating on its review, the FSA 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 redirected,» Nikkei outlined, adding that:

The suspension period is due to end Thursday, and the exchange will be barred by the agency from working and deny its enrollment.

What do you think of the 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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