Categories: Altcoins

Japan’s Financial Watchdog Publishes Results of Its On-Site Crypto Exchange Inspections

Click here to view original web page at cointelegraph.com

Japan’s financial watchdog, the Financial Services Agency (FSA), has published the results of its on-site inspections of cryptocurrency exchange operators, Cointelegraph Japan reports August 10.

Based on its findings, the watchdog has decided to apply more rigorous oversight into new applications from exchanges hoping to receive an official operating license. Newly registered exchanges will be required to undergo on-site inspections at an early stage and the agency plans to closely examine the effectiveness of their business models.

According to the agency, there are currently “hundreds” of companies awaiting its review.

The FSA probe revealed that exchange operators’ maintenance of their internal control systems has failed to keep pace with the rapid growth of transaction volumes, which it partly attributed to the “renaissance” of the crypto markets in fall 2017.

According to the investigations, the total digital assets of domestic exchanges surged to 792.8 billion yen ($7.1 billion), an over six-fold increase within the space of one year. Meanwhile, most exchanges’ workforces are fewer than 20 people, meaning that one employee on average was found to be managing digital assets worth 3.3 billion yen ($29.7 million).

The comprehensive document identified a wide array of problems across exchanges’ business models, risk management and compliance, internal audits, and corporate governance. The agency further highlighted concerns over insufficient anti-money laundering (AML) measures among certain exchanges.

Local news platform Nikkei has reported that it is likely the new registration of exchange operators — which had virtually stopped in the wake of January’s $532 mln hack of crypto exchange Coincheck — will resume following the FSA’s interim publication.

The FSA has said that “substantial” ongoing review of registration procedures will be necessary, and that it will continue to give “priority to investor protection.”

In May, the FSA unrolled regulatory stipulations for registered exchanges, including tough restrictions on the trading of anonymity-oriented altcoins.

In July, the FSA announced it was considering changing the legal framework for the regulation of cryptocurrency exchanges, and the agency was also recently restructured in order improve its handling of fintech-related areas, including cryptocurrencies.

A self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA), formed in early March in order to develop and coordinate policies in conjunction with the FSA. Last month, JVCEA announced it would be requiring its members to place maximum limits on the volumes traded by their customers.

Based on its findings, the […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

New York Gym Grit Bxng Accepts BTC Payments

Who would have ever thought that working out and bitcoin could ever go together? Well, thanks to a new Manhattan-based… Read More

4 hours ago

Are Whales Behing Bitcoin’s Latest Dips?

A reason for the recent up-and-down behavior of bitcoin may have been uncovered. It’s being reported that several whales moved… Read More

4 hours ago

Bitcoin Drops Below $10,000 as Support Wears Thin

Bitcoin (BTC) has once again found itself caught in the throes of a choppy trading range that has provided little… Read More

4 hours ago

Bitcoin Bottomed at $9,080, BTC to Rally Into End of 2019

Once again, Bitcoin (BTC) has stagnated, finding a foothold around $10,000 for the umpteenth time in a matter of weeks.… Read More

4 hours ago

Cresio CIO Comments, New ‘Satoshi’ and BTC Games: This Week in CT Spain

As many of our readers probably know, Cointelegraph has a number of non-English branches, each covering news from different parts… Read More

4 hours ago

VeChain Attends Shanghai International Blockchain Week 2019

SHANGHAI, Aug. 24, 2019 /PRNewswire/ -- From September 14-18, 2019, Shanghai International Blockchain Week 2019, the largest and most influential… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More