As per one of the latest reports, the Japanese Financial Services Agency (FSA) has received 190 applications for cryptocurrency exchange license. The FSA has given the local crypto industry a self-regulatory status.
The Japanese Virtual Currency Exchange Association (JVCEA) has been certified by the Japanese Financial Services Agency to supervise the space efficiently and effectively. Also, The JVCEA is presently expected to develop an anti-money-laundering (AML) rules and regulations that enhance strict monitoring and issue guidelines to the crypto exchanges.
One of such licenses was recently issued to one of the cryptocurrency exchange ‘Coincheck.’ The FSA also issued two business enhancement orders to such exchange following a hack during January. Such enhancement orders were more related to set sufficient standards that ensure customer protection along with anti-money-laundering measures. The FSA has issued “punishment notices” to seven crypto exchanges in March who were indulged in the fraudulent activities.
The commissioner of Japan’s FSA stated in August in which he said that the agency wanted the crypto industry to “grow under appropriate regulation.” He further assured that the agency has “no intention to curb [the crypto industry] excessively.”
Since the world of Cryptocurrency and blockchain industries has been constantly growing in Japan, such growth process has forced the FSA too to follow suit and enhance itself to keep in pace with the growing industry. With regards to the same, the agency has revamped itself to deal with the fintech-related fields including cryptocurrencies in a more effective and efficient way.
The Strategy Development and Management Bureau has taken the place of the Inspection Bureau that is responsible for developing and maintaining an effective financial strategy policy which should handle all the crucial issues including addressing all the issues related to digital currencies market, fintech, and money laundering.
The Policy and Markets Bureau will replace the Planning and Coordination Bureau and is designed to develop a legal framework that is bound to monitor the fast movement within the financial and technology sector.
The FSA also brought in place guidelines and regulation that mandates the cryptocurrency exchanges to report any suspicious transactions. Post introduction of such a framework the Japanese National Police Agency (NPA) has reported a vertical increase in such reports and stated that it has received around 5,944 such reports between the month of January and October