The Initial Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto exchange 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 an exchange operator that it has 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 has been allowed to run a crypto market while its program with the FSA has been reviewed. There are 16 deemed dealers. However, the agency said recently that 8 of these have suggested that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Meanwhile, Japan has 16 cryptocurrency exchanges that are fully-licensed and about 100 businesses are seeking to enter the space including Yahoo! Japan, Line Corp, and CoinbaseTrueFlip app >Suspended with Corrective Orders
Besides Coincheck that was hacked in January, FSHO is the other crypto market in Japan to receive two penalty orders. 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 linked to cryptocurrencies from March 8 to April 7. The business was told to fix 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 Secondly Suspension
In the April order, all operations relating to cryptocurrencies of the company from April 8 to June 7 were suspended by the agency and issued another business improvement order.
This order includes five business improvement areas, some of which were the same as those in the initial order. One of new areas are the”Establishment of a successful management system such as money laundering and terrorist financing” and a risk management system. The company was supposed to report the changes to the agency by May 7betcoin app on its review, the FSA found that”the trade did not sufficiently verify the identity of customers in trades 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 exchange will be barred by the agency from working and deny its enrollment.
What do you think of this FSA finally rejecting a crypto exchange enrollment? Tell us in the comments section below.
Images courtesy of Shutterstock, FSHO, and Nikkei.
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Source: bitcoincasinoreview.net
