News: The FSA of Japan toughened the requirements for registration of cryptocurrency exchanges

In Japan, the rules and procedures regarding registration of cryptocurrency exchanges were reconsidered. According to the decision of the Financial Services Agency (FSA), the process of reviewing existing applications for registration (that have not yet been approved) will be considerably tougher.

Local mass media report that organizations that are waiting for an answer with regard to the application have the right to conduct business.

The FSA will also inspect the stock exchanges that have passed initial check, as described by the Japanese daily newspaper Sankei Shimbun. The Agency will await the withdrawal of an application if a company does not take into account the comments and remarks on the results of the inspections.

Toughening of checks and verifications of cryptocurrency exchanges is conducted with the purpose of avoiding hacking of cryptocurrency wallets, as it was with Coincheck. After the Financial Services Agency conducted an audit of companies that are awaiting consideration of the application for registration and conduct business and found security violations on the part of many exchanges, it was decided to tighten the rules and requirements for the registration procedure.

Already registered companies are also checked. To some exchanges, such as GMO Coin and Tech Buerau, the FSA sent an order to improve business processes. The Agency pays close attention to the verification of user protection systems and audit functions.

According to the publication of Sankei Shimbun, more than 100 applications for obtaining a license for cryptocurrency exchanges have been filed in Japan as of present day.