Japanese Watchdog to Check 32 Exchanges

Financial Service Agency of Japan will test exchanges at 43 different point
05 February 2018   108

Japanese Financial Service Agency announced the check of 32 local cryptocurrency exchange. This is reported by Bitcoin com.

The inspection will affect 16 cryptoexchanges, which have already applied for licenses in the FSA. Also, the agency will check the activities of the other, already licensed trading platforms.

The agency will test the activities of cryptoexchange at 43 different points, which include aspects related to risk management, cybersecurity and ensuring the safety of users' funds.

In September last year, the Agency granted applications for a license for 11 local crypto-exchanges. Among them:

  • Money Partners,
  • Quoine,
  • Bitflyer,
  • Bit Bank,
  • SBI Virtual Currencies,
  • GMO Coin,
  • Bittrade,
  • Btcbox,
  • Bitpoint,
  • Fisco Virtual Currency
  • Zaif.

After that, in December, these Japanese trading platforms were licensed 

  • Tokyo Bitcoin Exchange,
  • Bit Arg Exchange Tokyo,
  • FTT Corporation,
  • Xtheta Corporation, 
  • Bitocean Corporation

The following exchanges are currently awaiting licensing:

  • Minnano Bitcoin,
  • Payward Japan,
  • Lemuria Bitcoin Exchange (Bitcrements),
  • Campfire Corporation,
  • Tokyo Gateway,
  • Lastroots Corporation,
  • Debit,
  • Eternal Link,
  • FSHO Corporation,
  • Kirin Corporation,
  • Bit Station,
  • Blue Dream Japan,
  • Mr . Exchange,
  • Bmex Corporation 
  • Bitexpress Corporation.

Shortly after the hacking of the large crypto-exchange Coincheck, the Japanese regulator checked the financial condition and reliability of the security systems of the trading platform. FSA obliged the management of the Exchange to strengthen the reliability of security systems and by February 13 to provide the department with a report on the work done. 

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   33

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.