The First Rejection
The Japanese Financial Services Agency (FSA) is reportedly preparing to reject an application to operate a crypto market in the country. “The first time it has done so,” Nikkei reported, including:
The decision follows the ministry’s decision 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 determination 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 operate a crypto market while its application with the FSA is being reviewed. There are 16 deemed dealers altogether. However, the agency said recently that 8 of them have suggested that they will withdraw their applications and best bitcoin live casino online with manual flushing.
Meanwhile, Japan has 16 cryptocurrency exchanges that are fully-licensed and approximately 100 companies are currently seeking to enter the space including Coinbase, Line Corp, and Yahoo! Japanrun bitcoin gambling casino license bitcoin casino free bonus >Suspended with Corrective Orders
Besides Coincheck which was hacked in January, FSHO is the only other crypto exchange in Japan to receive two penalty orders from the FSA. The first was on March 8 and the second.
In the March order, the agency suspended all of FSHO’s businesses linked to cryptocurrencies from March 8 to April 7 and issued the company a business improvement order. The business was told to fix four areas of operations such as to”Build a position to safely 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, all operations regarding cryptocurrencies of the company from April 8 were again suspended by the bureau and issued another business improvement order.
This second order contains five business improvement areas, some of which were just like those in the initial order. Among new areas are the”Establishment of a successful management system including money laundering and terrorist financing” and a risk management system. The company was supposed to report the adjustments to the agency by May 7bitcoin casino without deposit bitcoin casino deposit bonuses 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 customer deposits may be redirected,” Nikkei outlined, adding that:
The suspension period is due to end Thursday, after which the agency will bar the exchange from operating and deny its enrollment.
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.info
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