According to new information on the licensing process of cryptocurrency exchanges in Japan, the applications of seven operators must be approved or rejected within the next two months, Cointelegraph reports.
The Financial Services Agency of Japan (FSA) noted that making a decision on licensing the cryptocurrency exchange requires a long review, which takes about six months and is associated with studying the applicant's answers to more than 400 questions.
As explained in the FSA, after receiving the responses, the agency contacts the company to confirm information about its plans, management systems, cyber security and anti-money laundering. At this stage, the department officials are personally convinced of the correctness of the information provided.
After the end of the first phase, which takes about four months, the company submits an official application to the FSA. The agency studies the application and decides whether to issue a license within two months.
The regulator said that at the first stage of the process, there are currently 21 companies, and seven have moved to the decision-making stage. Thus, seven operators can receive licenses this spring.
Recently, the FSA reported that, contrary to reports on the network, the ministry is not considering the possibility of approving a exchange etraded fund (ETF) linked to bitcoin.