Japan’s FSA reveals crypto regulation update

Japan is trying to take its cryptocurrency regulation to new heights. The Financial Services Agency (FSA), Japan’s top financial regulator, held its fifth cryptocurrency study group meeting on September 12, 2018, and revealed (in pdf) that, while 160 companies are waiting in line to enter the crypto space, three cryptocurrency operators are currently being reviewed.

At the meeting, the FSA revealed that the Japan Virtual Currency Exchange Association (JVCEA) already has plans for a self-regulatory body for cryptocurrency exchanges. Yasunori Okuyama, the president of the JVCEA, explained that their organization already has a list of self-regulatory rules that they are implementing. Yasunori, who is also the president of Money Partners, explained during the meeting that one of the rules involves notifying the JVCEA when handling a new virtual currency. This is because the association has a right to object to the integration of the new coin.

Also, the organization has other important rules which are focused on managing customer assets. One such rule introduces restrictions for margin trading using cryptocurrency, which was designed to help suppress the risk of loss for users. It also is meant to reduce the excessive speculative transactions that are usually used in leveraged virtual currency trading. Other regulation focuses on anti-money laundering (AML) laws, as well as basic guidelines and ethics for initial coin offerings (ICO) and trading.

The JVCEA currently has 16 members—Money Partners, Quoine, BitFlyer, Bitbank, SBI Virtual Currency, GMO Coin, Bittrade, Btcbox, Bitpoint Japan, DMM Bitcoin, Bitarg Exchange Tokyo, Bitgate, Bitocean, Fisco Virtual Currency, Tech Bureau and Xtheta. The FSA also revealed that out of the 16 companies that sent their applications for review, 12 withdrew their applications, one was rejected and only three survived.

The FSA is also seeking additional workforce, as the long list of applications cannot be covered by its existing staff. It explained that it currently has 30 personnel responsible for monitoring, reviewing and supervising crypto exchanges and traders. The agency’s document revealed that the FSA is making a request for 12 more personnel to be able to respond swiftly to cryptocurrency exchange operators in the 2019 fiscal year. Kiyotaka Sasaki, FSA’s vice-commissioner for policy coordination, said at the meeting, “The biggest problem is how to deal with new operators.”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The post Japan’s FSA reveals crypto regulation update appeared first on Coingeek.

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Japan’s FSA reveals crypto regulation update

Japan is trying to take its cryptocurrency regulation to new heights. The Financial Services Agency (FSA), Japan’s top financial regulator, held its fifth cryptocurrency study group meeting on September 12, 2018, and revealed (in pdf) that, while 160 companies are waiting in line to enter the crypto space, three cryptocurrency operators are currently being reviewed.

At the meeting, the FSA revealed that the Japan Virtual Currency Exchange Association (JVCEA) already has plans for a self-regulatory body for cryptocurrency exchanges. Yasunori Okuyama, the president of the JVCEA, explained that their organization already has a list of self-regulatory rules that they are implementing. Yasunori, who is also the president of Money Partners, explained during the meeting that one of the rules involves notifying the JVCEA when handling a new virtual currency. This is because the association has a right to object to the integration of the new coin.

Also, the organization has other important rules which are focused on managing customer assets. One such rule introduces restrictions for margin trading using cryptocurrency, which was designed to help suppress the risk of loss for users. It also is meant to reduce the excessive speculative transactions that are usually used in leveraged virtual currency trading. Other regulation focuses on anti-money laundering (AML) laws, as well as basic guidelines and ethics for initial coin offerings (ICO) and trading.

The JVCEA currently has 16 members—Money Partners, Quoine, BitFlyer, Bitbank, SBI Virtual Currency, GMO Coin, Bittrade, Btcbox, Bitpoint Japan, DMM Bitcoin, Bitarg Exchange Tokyo, Bitgate, Bitocean, Fisco Virtual Currency, Tech Bureau and Xtheta. The FSA also revealed that out of the 16 companies that sent their applications for review, 12 withdrew their applications, one was rejected and only three survived.

The FSA is also seeking additional workforce, as the long list of applications cannot be covered by its existing staff. It explained that it currently has 30 personnel responsible for monitoring, reviewing and supervising crypto exchanges and traders. The agency’s document revealed that the FSA is making a request for 12 more personnel to be able to respond swiftly to cryptocurrency exchange operators in the 2019 fiscal year. Kiyotaka Sasaki, FSA’s vice-commissioner for policy coordination, said at the meeting, “The biggest problem is how to deal with new operators.”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The post Japan’s FSA reveals crypto regulation update appeared first on Coingeek.

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Japan puts more pressure on crypto exchanges

Japan’s Financial Services Agency (FSA) is making it tougher for cryptocurrency exchanges to register their businesses in the country, requiring disclosure of a lot more information than before, the Japan Times reported.

The regulator is requiring applicants to answer approximately 400 questions, from about 100 questions previously, during the screening process, as part of its efforts to keep customers’ money safe.

Among the added requirements for exchanges is to provide the FSA copies of minutes of board meetings, to ensure that sufficient discussions are held about a company’s financial management, and about database security. The FSA will also monitor a company’s list of shareholders, checking for, as the Japan Times phrased it, “links to antisocial groups.”

According to news.bitcoin.com, there are 160 companies looking to operate in Japan, but it remains to be seen how many will pursue their applications with the added requirements. At present, there are 16 exchanges licensed by the FSA. Another 16 are operating while their applications are pending review.

The stricter registration process comes after the January hacking of Coincheck, which lost a total of 523 million NEM tokens (XEM) worth $528 million at the time. This was larger than the 2014 Mt Gox hack where thieves took off with Bitcoins worth $480 million at the time. As early as March, Coincheck began the process of partially refunding those whose tokens were stolen.

Since the Coincheck hack, the FSA has conducted on-site inspections as a way to confirm information stated in applications. Such inspections revealed a lack of protection for users, in terms of manpower assigned to handle the large sums of money, and a skirting of anti-money laundering requirements. Some exchanges were suspended as a result. It was also found that records of minutes of the board were not kept properly.

The FSA has stated that it would allow the local cryptocurrency industry to grow, but “under appropriate regulation.”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The post Japan puts more pressure on crypto exchanges appeared first on Coingeek.

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