noviembre 22, 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, including:

The decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate 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’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 these have indicated that they will withdraw their applications and best bitcoin live casino online with manual flushing.

Japan has 16 cryptocurrency exchanges and about 100 companies are seeking to enter the space including Coinbase, Line Corp, and Yahoo! Japanno deposit bonus bitcoin casino usa best bitcoin casino usa reviews >Suspended with Corrective Orders

Besides FSHO is the only crypto exchange in Japan to receive two punishment orders from the FSA.  The first was on April 6 on March 8 and the second.

From the March order, the agency suspended all of FSHO’s businesses linked to cryptocurrencies from March 8 to April 7 and issued the company a business improvement order. The business was advised to correct 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, the bureau issued another business improvement order and suspended all operations regarding cryptocurrencies of the business from April 8.

This second order contains five business improvement areas, some of which were the same as those in the initial order. One of new regions are the»Establishment of an effective management system including money laundering and terrorist financing» and a risk management system.  The company was supposed to report the adjustments to the agencybitcoin casino best bonus bitcoin casino instant deposit on its review, the FSA found that»the trade did not sufficiently verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted,» Nikkei summarized, adding that:

The suspension period is scheduled to end Thursday, after which the exchange will be barred by the agency from operating and deny its registration.

What do you think of this FSA finally rejecting a crypto exchange enrollment? Let us know in the comments section below.

Images courtesy of Shutterstock, FSHO, and Nikkei.

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