Japan's Financial Services Agency (FSA) is set to reject a cryptocurrency exchange after the approval of 16 cryptocurrency exchanges. The cryptocurrency exchange that applied for consent was twice warned for its illegal practices on two dates: 8th of March, and 6th of April. In the notice given out in March, suspension of all FSHO's crypto business trades from 8th of March to 7th of April was in the limelight. A further order to improve the business was also passed. The firm was told to focus and enhance four areas of operations to establish itself as a safe platform for crypto transactions where the user's information is in secure hands. The improvements to be made are to be reported to FSA by 22nd of March. In the notice let out in April, FSA reissued a business improvement order and suspended all of the firm's crypto operations from 8th of April to 7th of June. This second issue of notice included five areas to work on and enhance, a few of which remained constant from the first issue of notice. The firm needs to report again with the changes done by 7th of May.
FSA after the review stated: “FSHO did not disclose to the required level the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted. The suspension period is due to end Thursday, after which the agency will bar the exchange from operating and deny its registration.” (Taken from Bitcoin.com, Author: Kevin Helms)
Nikkei, a news portal said: “This is the first time Japan has done something like this. This decision was made after the ministry of Japan concluded that FSHO based in Yokohama city has a deficit of essential elements in its networking system to run its business successfully. By rejecting a cryptocurrency exchange like FSHO which Japan found to be inadequate and faulty, Japan clearly exhibits its resolution to reform and establish a safer platform for the users to perform cryptocurrency trading in Japan.”
In Japan, FSHO is reportedly considered to be a dealer of cryptocurrencies, indicating its allowance to trade, while its application was under the review of FSA, before the rejection. A total of 16 dealers are currently in place running their business in Japan. Although 8 among the 16 displayed signs of withdrawal of their applications. Almost 100 firms are looking forward to entering into Japan's cryptocurrency exchange. A few firms included are Coinbase, Yahoo! Japan, and Line Corp.
Source: Bitcoin, Source of the image: CCN
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