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.
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.