As a result of the implementation of stronger regulatory measures, the Japanese Financial Supervisory Authority has now issued an official license to act in the Asian country for 11 crypto exchanges.
As reported earlier this week, Japan is planning to take a closer look at the trading of cryptos from next month. The basis for this is a law on regulation, which should primarily protect against the misuse of digital currencies, such as money laundering activities. In addition, the Know-Your-Customer-Principle (KYC) has set a standard which leads to an annual audit. The same law had also officially declared Bitcoin in Japan officially as the legal means of payment.
According to news agency Reuters, the first official licenses have been awarded to crypto exchanges.
Just before the Act comes into force, this can be seen as one of the final steps in its implementation. Previously, the vendors had been thoroughly examined for pre-determined basic conditions. These 11 crypto exchanges now have a legal status which confirms that they are able to meet all the standards under the new regulation law. Accordingly, they are still able to pursue their business without any restrictions. Besides the 11 now officially recognized crypto exchanges, there are currently 17 more still in the examination phase, while 12 more have not been able to meet the necessary conditions.
In the midst of the current wave of regulation, which in the case of Japan’s East Asian neighbors China and – most recently also – South Korea are particularly voiced, the island state seems already a step further in its regulatory efforts. From October onwards, for example, the law helps to curb the wild growth of the Japanese crypto market and to direct it into regulated channels. This regulatory step brings not only security and stability in Japan’s crypto trade, but also represents the probably only path for the cryptobranch to grow sustainably in the long term. In this sense, we can only hope that others will follow this example – above all the countries of the region.
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