In the crypto market, when prices are low, the demand and interest for crypto business are on the rise. Especially in Japan, the number of potential cryptocurrency exchanges has been overflown.
Recently, an unnamed FSA official revealed that the Japanese Financial Services Agency (FSA) has received 190 applications for cryptocurrency exchange license. The surprising number of applications indicates the interest of these entities in crypto space.
Japan is a country which has a welcoming attitude for cryptocurrencies and its utilization. In fact, it has already provided self-regulatory status to the local crypto industry. The country has certified the Japanese Virtual Currency Exchange Association (JVCEA) to oversee the crypto operations. Also, the JVCEA will be drafting anti-money-laundering (AML) policy and providing guidelines to crypto exchanges. The financial regulators at Japan are mainly concerned to ensure the expansion of this newly emerging industry within proper regulatory measures to eliminate illegal activities.
The recent number of application for crypto exchange license shows an increase of 30 companies from the previous count made in August. The FSA official stated, “Including preliminary consultation/inquiries regarding registration, more than 190 operators are expressing their intention of market entry.”
Reportedly, FSA didn’t name any particular applicant. But, some firms have announced on their own regarding their entry in the crypto market. These companies are Yahoo! Japan, Daiwa Securities Group which is the second largest securities brokerage in Japan, Line Corp., Money Forward Inc., Drecom Co. Ltd., Yamane Medical Corp., Adways Inc., etc.
Currently, In Japan, there are 16 licensed cryptocurrency exchanges. The prominent crypto exchanges in the country are like SBI Virtual Currency, GMO Coin, and more.
Earlier in December, FSA reportedly approved an operating license for Coinchack exchange which was hacked in recent past. Notably, Coinchack was the largest crypto exchange platform in Japan when it got hacked. After the hack, the exchange was acquired by the Monex Group. The company has been slowly re-opening its services post-acquisition.
With the growth of cryptocurrency and blockchain industries in Japan, FSA is also going through the advancements. In order to deal with fintech-related fields in a better way, it witnessed a major overhaul.