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The financial services agency (FSA) in Japan has accepted 190 applications for the cryptocurrency exchange license. The FSA has certified a committee known as the Japanese Virtual Currency Exchange Association (JVCEA). JVCEA is responsible for creating an anti-money laundering policy and offering instructions for encrypted exchanges.
This type of license for the exchange of cryptocurrency was issued to Coincheck. A hacker was informed about the Coincheck exchange in January of this year. Following this, two business improvement orders were sent to Coincheck on the FSA side.
Both improvement orders indicated an increase in the level of customer protection and anti-money laundering practices. It is absolutely necessary to take severe action against all cryptocurrency exchange platforms where fake events occur. Following strict rules and regulations, the FSA sent "notices of punishment" to seven of these cryptographic exchanges in the month of March of this year.
The financial regulators in Japan want the crypto industry to grow up with adequate regulation. They are not against the growth of cryptocurrency, but they do not want to increase cryptographic scams in their country.
The FSA is seeking better agreements with the Fintech-related industry such as cryptocurrencies. Everyone has understood that to ban cryptocurrencies is not the right decision to stop cryptographic scams. And that is why the development of the strategy and the bureau have replaced the inspection office. In addition, this office is responsible for managing issues associated with digital currency markets, fintech and money laundering.
Policy and Markets Bureau is trying to create a good framework that can increase the pace of progress in the Fintech sector. The launch of new rules and regulations concerning cryptocurrencies produced a positive result. There are various regulations that have been introduced in Japan by the Japanese government. One of these regulations requires reporting any dubious transactions. The Japanese National Police Agency (NPA) noted a steady increase in these reports. The Japanese NPA states that between January and October there were 5994 reports of dubious transactions.
Cryptocurrencies are still a topic of discussion. It seems that cryptocurrencies still need a long journey to gain success. The fate of cryptocurrencies depends on the blockchain technology. This innovative technology has revolutionized the whole world. Every sector like healthcare, medicines, logistics and finance is looking for blockchain technology. The reason is that the great potential of this incredible technology can increase the growth rate and security level of any industry.
