The Initial Rejection

The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto market in the country. “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 an exchange operator that it’s found to be substandard, the agency intends to demonstrate its decision 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 market while its program with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of them have indicated that they will withdraw their applications and best bitcoin live casino online with manual flushing.

Japan has 16 cryptocurrency exchanges that are fully-licensed and about 100 businesses are currently seeking to enter the space including Yahoo! Japan, Line Corp, and CoinbaseHow does 777Coin bonus >Suspended with Corrective Orders

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

In the March order, the agency issued the company a business improvement order and suspended FSHO’s businesses all related to cryptocurrencies from March 8 to April 7. The business was advised to correct four areas of operations such as to”Construct a position to safely manage user information.” The measures were to be submitted to the agency by March 22.

Rejection to Follow Second Suspension

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

This order contains five business improvement areas, some of which were the same as those in the order. Among new areas 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 agencymake money bitcoin casino bitcoin casino bonus code on its review, the FSA found that”the exchange did not adequately verify the identity of customers in transactions where crime is suspected, or in cases where consumer deposits may be diverted,” Nikkei summarized, adding that:

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

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

Images courtesy of Shutterstock, FSHO, and Nikkei.

Need to calculate your bitcoin holdings? Check our tools department.

Source: bitcoincasinoreview.net