Japan to Revise Exchanges Registration Rules

FSA "will strengthen the registration review" for companies that have submitted applications, but have not yet received approval
11 April 2018   488

The Financial Services Agency (FSA) of Japan has revised its rules and procedures for cryptocurrency exchanges registration. FSA "will strengthen the registration review" for companies that have submitted applications, but have not yet received approval. Companies whose applications are under consideration (they are called "quasi-operators") are still allowed to work. This is written by Bitcoin .com with reference to local media.

As for companies that have already passed the initial examination process, FSA, according to Sankei Shimbun, "will continue to work with them through on-site inspections."

As a result of the inspection, it is a policy [of the FSA] to strongly seek ‘withdrawal’ from exchange companies that do not show improvement, Sankei Shimbun reports

This process should help prevent the repetition of the situation with the hacking of Coincheck - the exchange in September last year filed an application for registration and worked as a "quasi-operator". A few days ago it became known that Coincheck was acquired by Monex Group.

FSA decided to go for tightening rules after having checked all quasi-operators and found a large number of exchanges with a lot of security violations. Subsequently, five companies withdrew their applications, and some exchanges were ordered to cease operations. In addition, according to the news agency Jili Press, on Friday FSA said that another exchange, Campfire, also "expressed a desire to withdraw the application for registration."

FSA also checked exchanges that are already registered, including Quoine, Tech Bureau and GMO Coin. Tech Bureau and GMO Coin received an order from FSA to improve business processes.

We mainly examine the system of protecting users, the auditing function, which we do not know by reporting alone, whether they are exercising corporate governance by properly separating management and execution.
 

FSA

At the moment more than 100 companies expect FSA to obtain a license for exchange-related activities. Among them, in particular, the company named Line Corporation, which owns one of the most popular messengers in the world - Line.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   119

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.