The main financial regulator of Japan, the financial services Agency (FSA) has published a number of papers from the fifth meeting of the study group in relation to cryptocurrencies, where they discussed the current state of the stock market and kryptomere.
The Agency confirmed that 16 companies are allowed to work while their applications are pending, only three have made recent inspections of the Agency. In respect of Coincheck, Lastroots and Everyco’s Bitcoin is currently being revised made improvements. The FSA has confirmed that in the future intends to conduct periodic inspections of registered exchanges on the spot.
Of these 16 companies a request for one was rejected by the Agency, and 12 more independently withdrew their applications. In addition, approximately 160 companies have expressed a desire to receive a license to work.
FSA needs to expand the team
Vice-Commissioner of the FSA policy coordination, national and Sasaki said at the meeting that “the biggest problem is the lack of personnel for learning new candidates,” according to Reuters. It was noted that currently the Agency employs 30 staff members, whose responsibilities include monitoring of kryptomere and traders, control of unregistered operators and consideration of applications for registration.
However, having more than 160 companies wishing to enter the market, the FSA needs additional manpower to review all the applicants. The Agency wants to add 12 more employees in the 2019 financial year, to respond more quickly to statements of cripture.
The plan of self-regulation
The meeting also discussed the self-regulation rules established by the Japanese Association of virtual kryptomere (Jvcea), which supports the FSA.
Currently, members of the Association are 16 licensed cripture: Money Partners, Quoine, Bitbank, Bitflyer, SBI Virtual Currency, Bittrade, Btcbox, GMO Coin, Bitpoint Japan, Bitarg Exchange Tokyo, DMM Bitcoin, Bitgate, Bitocean, Tech Bureau, Fisco Virtual Currency, and Xtheta.
The President of the Association, Yasunori Okuyama, announced the participants of the meeting a long list of rules of self-regulation, one of which related to adding cryptocurrencies to the exchange, where it is said:
“When listing a new virtual currency, following an internal review, are requested to notify the Association, and, if she has objection, the coin will not be added.”
Another rule is concerned with the management of clients ‘ assets. The Association explained that added additional restrictions, such as “action on margin trading with the use of virtual currency” in accordance with existing legislation.
In addition, the exchange must counteract money laundering (AML) and combat the financing of terrorism (CFT). Amongst these rules were considered those that relate to major transactions, dispute resolution, applications and advertising, trade regulations, ethics, and ways of processing the token-ICO.
Although the Association said that “the self-regulation rules must be observed at an early stage” to get accreditation, but acknowledged that some rules may take longer to meet the requirements.
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Labels: FSA, Japan