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In a major push to make the adoption and trading of cryptocurrencies mainstream, Japan’s Financial Services Agency has approved licenses of 11 companies to legally operate as cryptocurrency exchanges. Earlier this year in April, the Japanese government had legalised Bitcoins and other cryptocurrencies and has asked all the major exchanges to register with the respective government bodies.
Just when its neighbouring countries like China and South Korea are tightening the grip on virtual money, Japan is looking forward to establish itself as a leader and stay at the forefront of this fintech wave.
Also Read: After China, It’s South Korea To Ban Initial Coin Offerings (ICO)
However, the latest licenses require the local exchanges to follow certain protocols and procedures of operation. The requirements include having robust computer systems that meet the high-standards of cybersecurity as well as segregation and identity verification of customer accounts.
Financial Services Agency has said that it is still reviewing applications from 17 other exchanges, while 12 firms have shut down their operations following the regulations.
Also Read:18 companies are applying for Bitcoin Exchange in Japan
Quoine, one of the 11 firms who have received the license says:
” That it work along with regulators Towards the healthy development of the cryptocurrency industry within Japan and on a global scale.”
It seems that Japan has been quite pro-active in introducing proper framework of laws and regulations in order to ensure a smooth and transparent trading process by its local exchanges. However, several lawmakers point towards the collapse of local Bitcoin exchange Mt Gox in 2014 which catapulted a loss of several million dollars.
Financial Service Agency says that the new regulations are aimed towards protecting investor-interests and further support fintech innovations in the country.
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