According to reliable sources, the Financial Services Agency (FSA) of Japan has received about 190 applications for licenses to establish digital currency exchange offices.
Adopting self-regulation for the local industry of digital currency, FSA authorized the Japanese Virtual Currency Exchange
Association (JVCEA) to supervise this area. JVCEA is charged with developing the policies to combat laundering and setting
out guidelines for digital currency exchange offices.
Coin check Digital Currency Exchange Office has recently been awarded one such license. This office received two sets of
improvement guidelines from FSA after it was hacked in January.
These guidelines are fixed on enhancing customer protection standards and taking proper measures against laundering. FSA
sent legal notices to 7 digital currency exchange offices in March.
An FSA senior official said in August that the digital currency industry will hopefully develop according to proper regulations. “FSA does not intend to impose significant limitations on this industry,” he added.
FSA has expanded its scope of activities in harmony with the developments in digital currency and blockchain industries. To better examine Fintech-related areas, especially digital currencies, FSA underwent fundamental changes in July.
The Strategy Development and Management Bureau replaces the Inspection Bureau to develop the financial strategy policies, handle laundering, and resolve the problems in digital currency markets and Fintech.
The Policy and Markets Bureau replaces the Planning and Coordination Bureau to respond timely to the rapid changes in
Fintech by establishing a regulatory framework.
FSA received numerous reports after it mandated digital currency exchange offices to report suspicious transactions.
According to FSA, 5,944 suspicious transaction reports were received between January and October.