50 Bitcoin Exchanges Filed for Japan License

Announcements, FinTech, Investing, News, Regulation | August 23, 2017 By:

The Japanese Financial Services Agency (FSA) has received registration applications from 50 bitcoin exchanges as of August 2017, according to a local publication.

Sankei Shimbun reported that the FSA has started their review on whether the exchanges dealing with digital currencies like bitcoin have implemented measures aimed at protecting their users.

In April of this year, the government of Japan amended its fund settlement law to allow recognition of bitcoin as a legal payment method. With that approval, the agency was required to ensure the registration of digital currency exchanges in the country. Exchanges must be registered by the end of September.

Under the law, new capital requirements for exchanges (a minimum of  JPY10 million (US$89,430) is required),  operations rules, and enhanced security protocols must be in place at exchanges operating in Japan. Employees must also be given training in securities rules and undergo annual audits.