According to a leading news outlet report, Financial Services Agency (FSA) of Japan recently received 190 crypto exchange license applications.
An anonymous staff member told the news outlet that the agency had received license applications from over crypto exchanges.
FSA has granted the local crypto sector a self-regulatory status by attesting the Japanese JVCEA to supervise the industry. Japanese Virtual Currency Exchange Association (JVCEA) is anticipated to develop AML policy. It will also offer guidelines to cryptocurrency exchanges.
The report further reveals that such kind of license was already granted to a crypto exchange Coinheck. Earlier this year, when the exchange experienced a hack, it received two business enhancement orders from the agency.
FSA proposes setting higher standards for AML Measures
The agency ordered the Coinheck to mainly focus on setting higher standards for AML measures and user protection.
Later in March, the Financial Services Agency sent warning notices to seven cryptocurrency exchanges in the country.
In August, the FSA’s commissioner said that the agency wanted the cryptocurrency space to develop under proper regulation. He also ensured that the agency has no such plans to ban the crypto industry exceedingly.
While the blockchain and the crypto industries have been evolving in the country and were the FSA too. Back in July this year, the Japanese financial regulator underwent a major remodeling.
The Management and the Strategy Development Bureau has replaced the Inspection agency. Additionally, it will create a financial strategy policy. It will also manage problems regarding cryptos market, money laundering, and fintech.
However, the markets and policy agencies will replace the Coordination and Planning agency. It will further develop a legal framework that tackles the swift development of the fintech industry.
The National Police Agency of Japan after proposing laws that require crypto exchanges to report doubtful transactions recently reported a steep growth in such cases. As per the NAP analysis, there have been 5,944 such cases in the mid of January and October.