Is Japan being bullish on cryptocurrency exchanges or is trying to protect the investor’s money??
This question arises in wake of the incident in which five cryptocurrency exchanges had withdrawn their applications to be licensed in Japan. According to Financial Services Agency of Japan, these five cryptocurrency exchanges have withdrawn their application because they can’t meet the government’s requirements.
Japan is trying to implement a system which protects the investor’s money so exchanges have to take license before the operation and have to fulfill some important criteria.
In Japan, 16 exchanges have the license to operate. In past, many frauds had been reported to the FSA is being strict on this. Earlier this year, the Tokyo-based Coincheck exchange reported a 58 billion yen is one of the biggest hacks.
Tokyo GateWay and Mr. Exchange are the two exchanges which recently told the government they no longer want to apply for licenses because they cant meet the requirements to obtain the license so they are quitting.
According to FSA Three other exchanges: Raimu, bitExpress and Bit Station, dropped out earlier. FSA is firm on its point that govt cant ignores any step which paths to protect the consumers of cryptocurrencies.
The exchanges that are giving up on being licensed will have to reimburse their customers before shutting down as FSA told to these exchanges. The companies can continue with other services that don’t require the cryptocurrency exchange licenses according to FSA.
Coincheck which is in operation since 2012 applying for the license but still didn’t managed to get it.