Osaka, JAPAN – The Japanese financial regulator, the Financial Services Agency (FSA) has recently revealed that more companies are seeking to enter Japanese crypto markets – with over 190 companies looking to register as cryptocurrency operators.
The agency does not seek to intervene in the functioning of the entire crypto industry in the country, rather, it has already provided it a self-regulatory status. However, it has certified the Japanese Virtual Currency Exchange Association (JVCEA) for supervision. The regulator is only concerned to witness the growth of this newly emerging industry within proper regulatory measures to curb illegal activities.
Interestingly, despite the prolonged crypto winter that has seen crypto prices plummet throughout the year after the record high set exactly a year ago, the number is up by more than 30 since the FSA’s statement in August that 160 operators were seeking access to the Japanese market.
Currently, there are only 16 licensed exchanges in the country – including GMO coin – whose parent company, GMO Internet, announced this week that it is completely winding down its Bitcoin mining offering.
Earlier in December, the FSA explained that it is set to introduce a new regulatory framework next year for ICOs. Under the new rules, Japanese citizens will be limited in the amount they can invest in ICO-related projects, while business owners who want to issue their own digital currency will be required to register with the FSA.
The FSA has also reportedly approved operating license for a hacked crypto exchange Coincheck, that is expected to be released soon. At the time of hack, Coincheck was Japan’s largest cryptocurrency exchange and after being hacked, the FSA had twice ordered the exchange to improve its business operations.