The financial services Agency (FSA), serving as the chief financial regulator of Japan have complicated the process of registration of new cryptocurrencies.
The FSA has made changes to the law on payment services, effective from April 2017 to “test appropriately cryptocurrency exchange control risks”, a source told The Japan Times. The financial regulator has added several new items to pre-existing legislation, thus increasing “the number of questions asked in the screening process, up to 400, or 4 times”.
In addition, the FSA now requires that he be provided access to records of meetings of the Board of Directors of the bitcoin exchanges, as well as a report on shareholders to “test their relationship with antisocial groups”. The Japan Times writes that the exchange of cryptocurrency must “pass information about the duration of meetings of the Board of Directors to the regulator could ensure adequacy discussion on financial stability of companies and the security of their computer systems.”
In August the FSA published the results of a field test of the local marketplaces, conducted in light of the January burglary of the exchange Coincheck. Then it became known that the regulator plans to carefully evaluate the effectiveness of the business models of new cryptocurrencies. The Commissioner of the FSA, Toshihide Endo in a conversation with Reuters said that the aim of his Department is the development of crypto-industry “with proper regulation”.
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