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 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 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 program with the FSA is being 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.
Japan has 16 cryptocurrency exchanges that are fully-licensed and about 100 businesses are currently seeking to enter the space including Coinbase, Line Corp, and Yahoo! JapanUse the bitcoincasinoreview.net >Suspended with Corrective Orders
Besides Coincheck which was murdered in January, FSHO is the only crypto exchange in Japan to receive two punishment orders from the FSA. The first was 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 advised 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 Second Suspension
From the April order, the agency suspended all operations regarding cryptocurrencies of the company from April 8 and issued another business improvement order.
This second order includes five business improvement areas, some of which were the same as those in the initial 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 7no deposit bonus bitcoin casino usa best bitcoin casino usa reviews on its review, the FSA found that”the trade did not adequately 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 due to end Thursday, after which the agency deny its enrollment and will depart the exchange from operating.
What do you think about this FSA finally rejecting a crypto exchange registration? Tell us in the comments section below.
Pictures courtesy of Shutterstock, FSHO, and Nikkei.
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Source: bitcoincasinoreview.net
