In the latest announcement by Financial Services Agency (FSA), a financial regulator of Japanese banking, financing and security services, close to one hundred and ten digital currency exchange platforms are set to prepare their ground in the Japanese crypto space.
Although the exchange services are busy laying their foundation at different stages, which include initial registration process and consultation, the list includes some influential names from the tech industry.
The list includes some noteworthy exchange services
Bitbox, a virtual exchange service under the ownership of Japan’s social media Goliath, Line Corporation, is one of the prominent participants to look out for. The exchange platform has already spread its wings beyond Japan and entered US markets.
Another significant investment of Line Corporation, BitMax, is lined up to receive the big nod from FSA to serve approximately eighty million crypto investors in Japan. The exchange platform will facilitate transactions involving major cryptocurrencies including Line’s Link token.
Is FSA undergoing a change of heart?
The recent movements around FSA’s approvals allude to its amendment set in Apr 2017, mandating all exchange services in the country to gain necessary approvals under the Payment Services Act to operate in Japan and outside.
Following the Coincheck’s heart-wrenching crypto hack story, which cost the firm over five hundred million dollars ($500 million) in losses, the financial agency had tightened its security around the licensing processes. With rigorous inspections of platforms that fail to meet the requirements coupled with issuing business improvement orders, FSA did everything possible to ensure compliance.
That said, it also approved licenses of three major firms this year, including the likes of Rakuten Wallet, a trading platform owned by the e-commerce behemoth, Rakuten.
As a result, its recent outlook towards promoting cryptocurrencies and platforms for digital currency exchange can be viewed as an evolution in a positive direction.