110 Crypto Exchanges Are Reportedly Trying to Get Licensed in Japan

In 2019 the Financial Services Agency has approved 3 new exchanges, following a year without any new openings.

Jul 11, 2019 at 8:00 p.m. UTC
Updated Sep 13, 2021 at 9:25 a.m. UTC

Japan’s interminable winter for cryptocurrency exchanges seems to have thawed.

The Financial Services Agency (FSA), Japan’s top financial watchdog, told crypto news site Bitcoin.com that 110 exchanges are in “various stages of registration.”

In 2018, the FSA, did not grant approval for any crypto exchanges to begin operating in the country. The year prior, the agency had approved 16 new exchanges.

Additionally, in 2018 the FSA began issuing “improvement orders” to preempt potential cases of fraud or KYC noncompliance and started conducting on-site inspections.

“BitFlyer, amongst other top exchanges in Japan, received the improvement order based on a changing regulatory climate in Japan,” a bitFlyer representative said. The company voluntarily stopped opening domestic customer accounts for those looking to join the platform, as it worked to meet the FSA’s stricter identification requirements.

Now it appears the climate is changing again.

On July 3, bitFlyer announced it would resume processing new accounts. Additionally, according to Bitcoin.com, in the first six months of 2019, the FSA has granted approval to 3 additional crypto exchanges, bringing the total amount of operators to 19.

While details for the majority of applications for new crypto exchanges are scant, Bitcoin.com reports many are in a preliminary stage.

If approved, these exchanges will need to comply with newly introduced obligations in the Payments Services Act and Financial Instruments and Exchange Act, enacted by the Japanese legislature on March 31 to take effect in April, 2020.

The acts introduce expensive licensing fees as well as extensive protocols for data protection, customer on-boarding, and custodial safeguarding.

FSA image via Shutterstock


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
2
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
3
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
4
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown