The Initial Rejection

The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto market 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 run its business…By barring an exchange operator that it’s found to be substandard, the agency aims 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 application with the FSA has been reviewed. There are 16 deemed dealers. 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 and approximately 100 companies are seeking to enter the space including Yahoo! Japan, Line Corp, and CoinbaseCloudBet site >Suspended with Corrective Orders

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

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

Rejection to Follow Secondly Suspension

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

This order includes five business improvement areas, some of which were the same as those in the first 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 changes to the agency by May 7bitcoin online casino australia bitcoin casino bonus codes usa 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 consumer deposits may be redirected, » Nikkei summarized, adding that:

The suspension period is due to end Thursday, and the agency deny its registration and will bar the exchange.

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

Images courtesy of Shutterstock, FSHO, and Nikkei.

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