JAPAN: 11 Bitcoin exchanges in Japan have gotten the operation approval as they got licenses from Financial Services Agency (FSA) today.
The licenses are coming on the heels of Japanese authorities’ directive that cryptocurrency operators must be registered and recognized by the government by the end September, 2017.
The government’s directive is to help maintain high standard for cybersecurity, the segregation of customer accounts and the verification of customer identities.
“Seventeen applications are still in review, while 12 firms have closed their doors in light of the new regulations,” coindesk reports.
One of the local cryptocurrency exchanges, Quoine, was quoted as saying that it’d work alongside regulators “towards the healthy development of the cryptocurrency industry within Japan and on a global scale.”
Japan is said to be working with cryptocurrency operators in order to foster “sound market development” by working with the exchanges.
Collapse of one of the local bitcoin exchanges, Mt Gox, in 2014 is believed to have thought Japanese authorities lessons on how to protect consumers of bitcoin. Millions of funds were lost during the collapse.
“The news comes at a time of regulatory shifts in the broader cryptocurrency landscape. Earlier this month, China issued a blanket ban on fundraising methods involving token sales, or initial coin offerings (ICOs), and local cryptocurrency exchanges have indicated they will cease domestic trading following the ban.
“South Korea has also stated ICOs are illegal as of today, as well as tightening the rules for exchanges, coindesk stated.