The Financial Services Agency of Japan (FSA) is to closely monitor the strict observance of the requirements of the legislation on the use of cryptocurrencies by the exchanges from the next month, as reported by japantimes.co.jp.
According to the newspaper, the purpose of the control strengthening is the need to ensure that the crypocurrency companies will comply with the requirements of the revised law on payment services, adopted in April this year. The law sets operating standards for crypto exchanges and recognizes Bitcoin as a legitimate means of payment.
The surveillance is intended both to regulate the exchanges and to ensure the healthy growth of the cryptocurrency market:
We pursue both market fostering and regulation enforcement. ... We aim for sound market development.
Thus, the FSA has also established a 30-member team specifically to carry out surveillance of virtual currency exchanges in the country. As cnn.com reported earlier, the oversight and scrutiny by Japanese authorities was to be expected so as to avoid any scenario of a Mt Gox-like collapse in the country.