While Japan has welcomed cryptocurrencies with open arms, the country’s regulator also keeps a close watch and regulation over the ecosystem to ensure the protection of their citizen. In order to do so, the Japanese Financial Services Agency (FSA) gave the local crypto industry self-regulatory status and granted licenses for cryptocurrency exchanges is one of their job profile.
Reportedly, the agency has received over 190 applications for cryptocurrency exchange licenses, as told by an unnamed FSA staff member quoted by Cointelegraph Japan in their report on Dec. 28. On orders of FSA, theJapanese Virtual Currency Exchange Association (JVCEA) overseas the crypto space in Japan. Along with providing the guidelines to crypto exchanges, the JVCEA is also responsible to develop anti-money-laundering (AML) policy.
Cryptocurrency exchange Coincheck experienced a hack in January, after which the FSA sent the exchange platform two business improvement orders, focused majorly on setting higher standards for customer protection and anti-money-laundering measures. In March, FSA also sent “punishment notices” to seven crypto exchanges.
The commissioner of Japan’s FSA stated in August, that they wish the crypto industry to “grow under appropriate regulation,” and further assured that they have “no intention to curb [the crypto industry] excessively.”
Read more: Japan’s Financial Regulator Reveals The Updated List of Crypto Regulations
With the growth of cryptocurrency and blockchain industries in the country, Japan has been reportedly switching gears in order to better deal with fintech-related fields, including cryptocurrencies. The Inspection Bureau was replaced by the Strategy Development and Management Bureau replaced to draft a financial strategy policy that will handle issues pertaining to the digital currencies market, fintech, and money laundering.