Japans FSA grants official approval to 11 cryptocurrency operators

Monday 2 October 2017 13:04 CET | News

Japan’s Financial Services Agency has approved 11 companies as operators of cryptocurrency exchanges.

In April 2017, the Japanese government recognized Bitcoin as legal tender and required cryptocurrency exchange operators to register with it. With the new regulation, Tokyo aims to balance the need to protect investors with the need to support fintech innovations. Furthermore, the authority is still reviewing registration applications from 17 other exchange operators.

According to Reuters, this move sets the country apart from its neighbours, which are tightening their grip on virtual money, and aims at avoiding a repeat of the failure in 2014 of Tokyo-based Mt Gox, the world’s largest Bitcoin exchange at the time.

Nevertheless, the cryptocurrency operators need to build a strong computer system and separate customer accounts from checking their identity process, a key issue given concerns cryptocurrency could be used for money laundering.

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Keywords: Japan, Financial Services Agency, cryptocurrency, cryptocurrency exchange, Bitcoin, money laundering
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies