More than 100 companies waiting for the issuance of licenses for the management of cryptocurrency exchanges from the Japanese financial services Agency (FSA). Only 16 of the exchanges are fully licensed in Japan and the Agency has been allowed 16 to work without a license at the moment. In the future, most likely, a license will receive only exchange that provides a high degree of protection for investors.
According to Business Insider Japan among the companies applying for a license — the big banks, brokers and FX companies. Since Japan legalized
bitcoin and other cryptocurrencies as legal tender in April last year, the cryptocurrency exchange since then are required to register with the FSA. The Agency began issuing the licenses in September last year. At the moment, 16 operators have a work permit from the FSA, including Bitflyer, Bitpoint, Bitbank, GMO Coin, Quoine and Zaif.
Many other companies have applied for a license, including Line Corp, which operates the popular Japanese app for chat. The company announced its plans to begin work in the cryptocurrency industry five days after popular exchange Coincheck has been stolen
$ 530 million in cryptocurrency NEM.
«We are developing a serious security measure for our exchange,» — said recently the President Line Corp of Idesawa Takeshi (Takeshi Idezawa).
Revaluation of kaseberg
In addition to 16 fully licensed exchanges, the FSA has allowed 16 more companies to conduct business as a «quasioperational» cryptocurrency.
«Quasiparti is a special category for cryptocurrency exchanges,» said the Yomiuri Shimbun (Yomiuri Shimbun). «FSA allows the exchanges that were started before the system was introduced.»
However, the hacking Coincheck has forced regulators to think about whether or not to allow quasioperational to continue. FSA stated that it would conduct inspections at the offices of the exchanges «and check whether they take appropriate measures to protect customers,» — says the publication. «The Agency is ready to refuse registration of operators that provide insufficient security and improperly managing assets of clients, however it may cause a negative reaction of the owners of the exchanges and users of the cryptocurrency».
The current law does not specify how long quasioperational can continue to operate without a full license. But this state of things cannot continue long:
«The Agency came to the conclusion that from the standpoint of user protection is undesirable to allow unregistered operators to continue working almost a year after the entry into force of the revised law.»
The need to strengthen security measures
A source close to the FSA told the news publication that some quasioperational have not yet implemented adequate security measures and protect customers, so it will be difficult to obtain a license. For those who don’t will be able to quickly change the situation, «the FSA is considering the revocation of a temporary registration in connection with the updated law,» — says the publication. Also in the news highlights:
«Since, however, these unlicensed operators already have customers, the Agency fears that such actions will lead to criticism of the FSA and charges that it acts willfully and causes the confusion among users.»
After hacking Coincheck at the beginning of this year, FSA is urged
all cryptocurrency exchanges to increase the level of safety due to the increased risks associated with the cryptocurrency trade.