As it turns out, Japan is now having its own rush of growing interests in the crypto industry. Japan’s top financial watchdog, the Financial Services Agency (FSA), told Bitcoin.com the official website of the first known cryptocurrency that 110 exchanges are in “various stages of registration.”
Its no news to the public that there’s a rising interest in cryptocurrencies in many countries and more crypto exchanges are coming into the scene recently but 110 exchanges in one country alone, vying to launch, is a huge number. This may, however, be owing to the fact that last year, the FSA, did not grant approval for any crypto exchanges to begin operating in the country. In the year before the last (2017), the regulator had approved only 16 new exchanges.
Additionally, in 2018 the FSA began issuing “improvement orders” to preempt potential cases of fraud or KYC noncompliance and started conducting on-site inspections. “BitFlyer, amongst other top exchanges in Japan, received the improvement order based on a changing regulatory climate in Japan,” a bitFlyer representative said. Voluntarily, in a bid to meet the FSA’s stricter identification requirements, the company halted opening domestic customer accounts for those looking to join the platform.
The Japan soil now appears to be warming up again to the industry. BitFlyer announced on July 3, it would resume processing new accounts. Also in the first six months of 2019, the FSA has granted approval to 3 additional crypto exchanges, making the number of operators 19 in total, according to Bitcoin.com. The crypto news site also reported that many of the pending applications are still in a preliminary stage, not much additional information has been given about them.
The country now has newly introduced obligations in the Payments Services Act and Financial Instruments and Exchange Act that was enacted on March 31 but will take effect in April 2020. If these exchanges are approved or whichever that is approved would need to operate in line with the Japanese enacted regulations. According to reports, the acts introduce expensive licensing fees as well as extensive protocols for data protection, customer onboarding, and custodial safeguarding.
Credits- Daniel KuhnJOIN OUR COMMUNITY