The Initial Rejection

The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to run a crypto market in the nation. « The very 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 run 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’s been allowed to operate a crypto exchange while its program with the FSA has been reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of these have indicated that they will withdraw their applications and best bitcoin live casino online with manual flushing.

Meanwhile, Japan has 16 cryptocurrency exchanges and about 100 businesses are working to enter the space including Line Corp Yahoo! Japan, and Coinbasebitcoin casino with high payout chance min bitcoin casino deposit >Suspended with Corrective Orders

Besides Coincheck which was murdered in January, FSHO is the only crypto market in Japan to receive two penalty orders.  The first was on March 8 and the second.

From 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 correct four areas of operations such as to »Build 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

From the April order, the agency again suspended all operations regarding cryptocurrencies of the business from April 8 and issued another business improvement order.

This order includes five business improvement areas, some of which were just like those in the order. One of new regions are the »Establishment of an effective management system such as money laundering and terrorist financing » and a risk management system.  The company was supposed to report the changes to the agencyEthereum Sweepstakes casino 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 diverted, » Nikkei summarized, adding that:

The suspension period is due to end Thursday, after which the agency deny its enrollment and will depart the exchange.

What do you think about 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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