Japan receives 190 cryptocurrency exchange license applications
Back in October, the Japanese government went far ahead of any other country in the world and established a self-regulatory body, Japanese Virtual Currency Exchange Association (JVCEA), for the purpose to regulate the local crypto industry. The organization is comprised of the industry members and among other tasks also has to establish and oversee anti-money laundering (AML) policies.
Approved self-regulation was accepted as a crypto-friendly gesture of the government by other crypto industry members. As a result, the development of crypto in Japan started booming! According to the Japanese Financial Services Agency (FSA), 190 cryptocurrency exchange license applications were submitted following the announcement, which is an absolute record in the industry’s history of Japan.
The same license was recently granted to Coincheck exchange, which falls victim to one of the biggest crypto hacks of 2018. According to FSA, two business improvement orders have been issued to Coincheck as a requirement in order to receive a license, which focused on establishing higher standards for customer protection and anti-money laundering measures.
The FSA has also issued “punishment notices” to seven crypto exchanges in March. After the introduction of the regulations that require cryptocurrency exchanges to report suspicious transactions, another record has been set, highlighting 5,944 reports that were submitted to the National Police Agency (NPA) within the period from January to October. The successful example of integrating the regulatory framework and necessary enforcement strategies might make other countries to follow a similar path for the regulation of the cryptocurrency industry, experts say.