The Japanese crypto market is always in news regarding FSA and crypto exchanges. Recently, the Japanese Financial Services Agency (FSA) said that more than 100 companies want to join the Japanese Crypto Market. However, there are also eight companies who wish to withdraw their applications to operate cryptocurrency exchanges. The eight companies are deemed dealers. In Japan, these deemed dealers can operate cryptocurrency exchanges till their application are reviewed by FSA.
The FSA held a meeting with representatives from the Bank of Japan, the Ministry of Justice, the Consumer Affairs Agency, and the Ministry of Finance. Taizen Okuyama, President of the newly formed self-regulatory organization and of foreign exchange platform provider Money Partners Group, also took part in. This study group took place to discuss the state of cryptocurrencies in Japan last week.
The FSA wrote:
Eight deemed virtual currency exchange companies announce the intention to withdraw registration applications…One company confirms that it does not fall under the virtual currency exchange industry as a result of grasping the actual situation in detail.
Tokyo Gateway, Mr. Exchange, Raimu, Bitexpress, Bit Station, Campfire, and Payward Japan which operates Kraken exchange are the seven companies who will withdraw their application in totality. The eight will be Debit, which will withdraw its application as it does not fall under the category of a deemed dealer. Furthermore, the agency confirmed that approximately 100 companies have declared their intention to enter the crypto space, stating that “Various companies intend to newly enter [the crypto space] (About 100 companies).” Among the 100 companies wanting to enter the space was Cyberagent which operates the Internet TV station “Abema TV” and the Internet advertisement business, which boasts the largest market share in Japan.
The FSA revealed that 14 orders have been issued till date. One on January 29, seven on March 8, three on April 6, one on April 11, one on April 13, and one on April 25. The number of administrative penalties that have been issued so far totaled up to 12. Five crypto exchanges have received business suspension orders while seven business improvement orders, excluding Coincheck.
President and CEO Susumu Fujita said last week that in light of the Coincheck hack, “There are risks that we should not undertake when compared with other projects,” Itmedia quoted him. He elaborated: Entry [into the crypto space] is slow in the first place. The examination by the Financial Services Agency is becoming severe.
The CEO added that the company will develop its own system to reduce risks so its entry into the crypto space will be delayed. According to the news outlet, Cyberagent is, however, considering issuing its own cryptocurrency.