Seven Cryptocurrency Exchanges In Japan Could Receive FSA-Issued Licenses In Two Months


Japan is one of the few regions that are open minded about blockchain technology. This is why the government and regulatory agencies in Japan are doing everything they can to create the perfect environment for the cryptocurrency and blockchain industry to thrive without hurting the ordinary investor. A while ago, the FSA in Japan demanded that cryptocurrency exchanges that want to operate without interference should submit their application for a valid FSA license. Shortly after, seven companies submitted their applications.


7 Applications To Be Approved Or Disapproved In Two Months


The seven applications that were submitted are still being reviewed. However, the review process will be completed in the next two months according to new reports. After the review, the FSA will announce the names of the exchanges that have been either approved or disapproved. According to the reports by the FSA, the review process takes up to six months from the time of submission. This lengthy approval process is important because the regulatory body is concerned about the safety of these exchanges. Those who are interested in submitting applications will have to provide answers to up to 400 questions within the period.


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After the FSA receives these answers, it will contact the company to verify its management system, business plan, anti money laundering protection systems, cyber-security and counter-terrorist financing plans. At this point, officers will physically go to the company to verify its practices up close.


All this should take about four months. After that, the company submitting the application will officially submit a written document. The agency will use two months to study the application and decide whether to approve it or not. This is necessary to protect investors.
So far, there are 21 companies currently at the first stage of the review. Seven companies have made it to the last stage and would know their fate in the next two months. If approval is given, these seven companies will have new licenses by summer.


FSA Denies Consideration Of Bitcoin ETF


Some time ago, Bloomberg reported that the FSA in Japan is making plans to approve Bitcoin exchange-traded funds. However, the FSA denied having any such plans. It did admit to considering creating a firm regulatory framework for unregistered agencies that deal with cryptocurrencies.


The creation of a clear regulatory framework can either be a blessing or a curse for the industry. On one hand, institutional investors will find the industry more appealing if there is a high level of accountability. On the other hand, regulators may push the industry away from upholding its core principles of decentralization. This may chase away retail investors who want full control of their cryptocurrency holdings.


Either way, Japan is trying to accommodate cryptocurrencies unlike India that is making things more difficult for cryptocurrency enthusiasts. Recently, a report by smartereum.com, showed that banks in India are threatening to close the accounts of customers who deal in cryptocurrencies. The news got a lot of attention on social media with diehard Indian cryptocurrency enthusiasts insisting that they will continue to find ways to trade cryptocurrencies whether the banks like it or not.

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