Japan’s Financial Services Agency (FSA) recently concluded its fifth study group meeting on cryptocurrency, and revealed its plan to add 12 more people to its crypto team for the fiscal year 2019, according to a Reuters article dated September 12.
The article, originally written in Japanese, stated that the application for crypto exchanges are piling up, and that the FSA’s crypto team, which has over 30 people, is struggling hard to handle the traffic of applications. As of the moment, there are over 160 applications, and the market expects to see more, given the still-growing adoption of cryptocurrencies not just in Japan, but in the rest of the world.
Kiyotaka Sasaki, General Policy Director of the FSA, said that the biggest problem they are facing is the brimming of the many crypto exchange applications. And given their recent tightening of requirements, the review of such will now cost them more time.
The FSA also released a document—also written in Japanese—after the meeting, which said that it is currently reviewing 16 applications, even though 12 of those have already withdrawn, possibly due to the watchdog’s strict rules. Of the remaining four, one has already been rejected, while the rest are still awaiting the final verdict.
The agency began tightening its registration screening for aspiring cryptocurrency agencies beginning this month, with special attention given to applicants’ risk management systems.
As a matter of fact, the number of application queries has been increased fourfold—from 100 questions, there are now over 400 being asked. Included in the review are inquiries regarding the minutes of the board of meetings so as to find out if the company’s executives are devoting enough time and attention to sustaining their firm’s financial vitality and making sure that its computer systems are completely hack-free.
Furthermore, the agency would be conducting on-site inspections to verify the consistency of answers given in the screening with the applicant’s resources and facilities.
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