Financial Regulator in Japan Discloses Crypto Regulation Plans
According to the recent news from Japan, currently, there are three cryptocurrency operators that are under revision. Meanwhile, there are 160 institutional firms that are looking to get the place in crypto space.
However, the regulators in Japan are planning to add further personnel to help examine new applicants. Additionally, the process of self-regulatory plan submission for cryptocurrency exchanges is ongoing.
On September 12, the top financial regulator of Japan, the Financial Services Agency (FSA), revealed various documents during its fifth crypto study meeting. However, there were many topics that were into discussion include:
- Self-Regulatory Rules by Japan Virtual Currency Exchange Association (Jvcea)
- FSA Reviews the Cryptocurrency Exchanges
- Expansion of the Cryptocurrency Team
Self-Regulatory Rules by (Jvcea)
During the meeting, the authorities also discussed the establishment of self-regulatory rules. Japan Virtual Currency Exchange Association (Jvcea) will take the initiative to monitor new self-regulation.
At the moment, the association members are 16 cryptocurrency exchanges which hold the government approval.
The association demonstrates that additional restrictions will be applicable including margin trading measures for cryptocurrency within the compliance. The administrative guidelines and the fund settlement law will be in compensation with this.
However, cryptocurrency exchanges should combat financing of terrorism (CFT) measures, the anti-money laundering (AML) policies together with rules relating to anti-social forces.
Meanwhile, the association announces that these self-regulatory rules will come into action at an early stage to accomplish the accreditation of the association. However, they also agree to say some rules might stretch longer to comply.
FSA Reviews the Cryptocurrency Exchanges
During the meeting session, present state of cryptocurrency exchange registrations and regulations were also a point of discussion. Amongst 16 firms holding the authority to operate cryptocurrency exchanges while their application request is under revision, only three of them survives to come out of the recent inspections by an agency.
Coincheck, Everybody’s Bitcoin and Lastroots are the cryptocurrency exchanges under revision. The FSA states that it is currently evaluating the work improvement report of Coincheck and, will move ahead. However, it will potentially conduct on-site inspections regarding the registered exchanges.
Evaluating 16 firms, agency rejects one of the firms and three mentioned above are further under revision. However, the other 12 have withdrawn their request applications. Additionally, there are approx. 160 firms expressing interest in registering cryptocurrency exchanges.
Expansion of the Cryptocurrency Team
The vice commissioner for policy coordination at FSA, Kiyotaka Sasaki states at the meeting saying biggest issue comes on how to deal with new operators.
However, looking into 160 firms seeking to enter the market; FSA is ready with plans to add on the workforces for reviewing applicants. The FSA is also trying to request and accomplish 12 additional personnel by the coming financial year 2019. However, they are focusing forward to swiftly answer cryptocurrency exchange operators.