The Financial Services Agency (FSA) in Japan has accepted 190 applications for Cryptocurrency Exchange License. The FSA has certified a committee known as the Japanese Virtual Currency Exchange Association (JVCEA). JVCEA has the responsibilities of creating anti-money laundering policy and offering instructions for crypto exchanges.
This kind of cryptocurrency exchange license was issued to Coincheck. A hack was informed at the Coincheck exchange in January this year. Following which, two business improvement orders were sent to Coincheck from the side of FSA.
Both of the improvement orders were indicating towards increasing the level of customer protection and anti-money laundering practices. It is quite necessary to take strict actions towards all the cryptocurrency exchange platforms where fake things are happening. Following strict rules and regulations, FSA has sent “punishment notices” to seven such crypto exchanges in the March month of this year.
Financial regulators in Japan want the crypto industry to grow with proper regulation. They are not against cryptocurrency growth, but they do not want increasing crypto scams in their country.
FSA is trying for better deals with field related to Fintech such as cryptocurrencies. Everyone has understood that banning cryptocurrencies is not the correct decision to stop crypto scams. And that is why the Strategy Development and Management Bureau replaced the Inspection Bureau. Moreover, this bureau has the responsibility of handling the issues associated with digital currency markets, fintech, and money laundering.
Policy and Markets Bureau is trying to create a valid framework which can increase the pace of the progress of Fintech field. Launching new rules and regulations regarding cryptocurrencies has produced a positive result. There are various regulations that have been introduced in Japan by the Japanese government. One of such regulations asks for reporting any doubtful transaction. The Japanese National Police Agency (NPA) has noticed a constant increment in such reports. Japanese NPA says that there have been 5994 such reports of doubtful transactions between January and October.
Cryptocurrencies are still a topic for argument. It seems that cryptocurrencies still need to go for a long journey to acquire success. The fate of cryptocurrencies depends on blockchain technology. This innovative technology has revolutionized the whole world. Every industry such as healthcare, medicines, logistics, and finance is looking for blockchain technology. The reason is that the great potential of this amazing technology can boost the growth rate and security level of any industry.