The First Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto market in the country. “The very first time it has done so,” Nikkei reported, adding:
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 application with the FSA has been reviewed. There are 16 deemed dealers altogether. 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 cryptocurrency exchanges and approximately 100 companies are currently seeking to enter the space including Yahoo! Japan, Line Corp, and Coinbasebest free bitcoin casino bitcoin casino for usa >Suspended with Corrective Orders
Besides FSHO is the only other crypto market in Japan to receive two punishment orders. The first was on March 8 and the second.
In the March order, the agency issued the company a business improvement order and suspended all of FSHO’s businesses related to cryptocurrencies from March 8 to April 7. The company was advised to fix four areas of operations such as to”Construct a position to securely manage user information.” The improved measures taken 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 order contains five business improvement areas, some of which were the same as those in the order. Among new regions 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 agency by May 7online casino accepting bitcoin bitcoin casino best slots 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 consumer deposits may be redirected,” Nikkei summarized, adding that:
The suspension period is scheduled to end Thursday, after which the agency will bar the exchange and deny its enrollment.
What do you think of the 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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