In line with information cited by anonymous FSA staff member, the Japanese FSA [Financial Services Agency] received 190 cryptocurrency exchange license applications.
The FSA has given the native crypto industry self-regulatory standing, certifying the JVCEA [Japanese Virtual Currency Exchange Association] to administrate the crypto area. The JVCEA is currently expected to develop anti-money-laundering [AML] policy and providing tips to crypto exchanges.
As previously ‘reported‘ by EtherDesk, such a license was recently granted to cryptocurrency exchange Coincheck. Following a hack at the exchange earlier in the month of January, it received 2 business improvement orders from the FSA.
Those improvement orders were principally targeted on setting higher standards for client protection and AML [anti-money-laundering] measures. The FSA sent “punishment notices” to seven crypto exchanges in March.
The commissioner of Japan’s FSA stated in August that the agency needed the crypto industry to “grow beneath applicable regulations.” He additionally added that the agency has “no intention to curb [the crypto industry] too.”
As the cryptocurrency and blockchain industries are growing in Japan, so too as the FSA. Earlier in July, the agency underwent a significant overhaul so as to ‘deal better‘ with the fintech-related fields along with cryptocurrencies.
The Strategy Development and Management Bureau replaced the Inspection Bureau, and is reportedly expected to develop a monetary strategy policy and handle problems addressing the digital currencies market, fintech, and money laundering.
The Policy and Markets Bureau would be succeeding the planning and Coordination Bureau, and is tasked with developing a legal framework that would ultimately help in the rapid growth of the fintech sector.
After introducing the rules that require cryptocurrency exchanges to report suspicious transactions, the Japanese NPA [National Police Agency] reported a steep increase in such reports. In line with the NPA, there have been around 5,944 such reported cases between January and October.