As compared to other countries, Japan is one of the few who has already taken sides. The country and its government have been very supportive of blockchain and cryptocurrency, always working to better the regulations around them to make it more secure and beneficial. Through this approach, Japan is attracting more crypto firms relocating to Japan because of the laxer and more welcoming regulations. Last week, the Financial Services Agency (FSA) said that about 160 cryptocurrency exchange companies have applied to operate in Japan, a significant increase from a figure of 100 companies.
This week, the FSA has introduced new requirements for cryptocurrency exchanges in the country. Exchanges are required to provide minutes to back and validate their decision-making process. Doing so, it will help the FSA identify and determine whether the exchanges are conducting risk management in the right way. This new requirement allows them to check and confirm the involvement of company executives in the decision-making process. At the same time, FSA will also check the applicants have installed an internal system to scrutinize connections to antisocial groups.
According to the Japan Times, the financial regulator has also introduced new questions in the application and the exchanges will be required to respond to about 400 items from about 100. Previously, the exchanges were only required to respond to questions about their financial health and system safety measures.
The new requires came about because after conducting on-site inspections on 23 exchanges in the country, the companies were reported to have sloppy internal controls. The exchanges did not have board meeting minutes and after inspection, the FSA issued 6 cryptocurrency exchanges with improvement orders.
Japan’s crypto friendly policy has not only created more job opportunities, it has also allowed the locals to enjoy benefits such as reduced transaction time and costs. From the looks of it, Japan is determined to maintain a leading role in cryptocurrency regulations in order to become the preferred destination for blockchain and crypto companies.
Sources: Japan Times, New Bitcoin
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