In a rather unprecedented move, Japan’s Financial Services Agency (FSA) decides to deny FSHO, a cryptocurrency exchange firm hailing from Yokohama, license to operate in their country.
As stated above, this is the first time that the Japanese financial regulator will be rejecting an applicant’s its requested operating rights. The reason for the staunch decision to deny applicant its sought-for rights is that the agency assessed the crypto exchange firm’s systems to be lacking. In a statement to Nikkei, FSA iterated that “the decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate its system.” Furthermore, “by barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its determination to re-establish a sound currency trading firm in Japan.”
FSHO was considered a quasi-operator of cryptos in Japan, having the liberty to operate while its application was being reviewed. There were 16 dealers deemed altogether, but eight expressed their intent to withdraw their applications.
Currently, there are 16 cryptocurrency exchange platforms that have FSA’s blessings to operate on the Japanese crypto market. This will soon be joined by Coinbase, Yahoo! Japan, Line Corp, among many others, if the agency finds them fit to join the fray.