In line with a recent news report published by’Nikkei’, Japan’s regulatory authority FSA [Financial Services Agency] is reportedly cracking down on cryptocurrency exchanges that provide anonymous transactions or have weak authentication practices in preparation for the inspection by the FATF [Financial Action Task Force] this fall.
The FATF can reportedly send its inquiring arm to review the strength of the Japanese FSA’s AML [Anti-Money Laundering] policies, that incorporates policy for crypto exchanges and other financial services.
Japan reportedly was given the lowest scores for identity verification in monetary institutions earlier in 2008 as per a report by the FATF. A decade later, the Japanese FSA issued business improvement orders to practices that didn’t take applicable AML measures, like permitting users to sign up for their accounts with their genuine home addresses.
As per the report, Japan was the primary country to implement a registration system for ‘cryptocurrency‘ exchanges.
Earlier in the month of October, the FATF amended its rules to incorporate crypto exchanges in its ‘AML‘ regulative framework, and implored G-7 member countries to start out implementing ways for registration, licensing, as well as monitoring cryptocurrency exchanges.
As ‘reported‘ by EtherDesk earlier, Japan is hosting the Summit on Financial Markets as well as the World Economy [G20 2019] in Osaka later in June, and it’s pretty sure expected to discuss the forum on international crypto regulations and ICOs [Initial Coin Offerings]. Unlike China and South Korea, Japan has not declared a ban on ‘ICOs‘.
Earlier also, Japanese FSA announced in January that there are presently seven pending applications for crypto exchange licenses within the country. The applications are to be reviewed over a period of six month, as the organisation scrutinizes the applicant’s responses to around 400 queries.
Also in July last year, the FSA ‘underwent‘ major restructuring so as to better meet the challenges of managing the fintech as well as the crypto sectors.