Japan introduces new requirements to cryptomeria

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                                                                Japan introduces new requirements to cryptomeria



The financial regulator of Japan has introduced new screening requirements for crypto-exchanges trying to get approval to work in the country. Currently, the Agency continues to pay more attention to the financial security and safety of the registration system. Additional criteria include assessment of the decision-making process of companies and their relationship with anti-social groups.

Japan's chief financial regulator, the financial services Agency (FSA), "tightened the registration display for cryptocurrency exchangers to find out whether they are properly conducting risk management," the Japan Times reports, citing unnamed sources.

In particular, sources said on Saturday that the Agency "increased the number of questions asked when applying for participation by about four times, expanding the list to 400", — said the news outlet. "Previously, the issues concerned only such aspects as the financial situation of the applicant and the security measures of the system."

Sources also reported to the news Department:

The FSA now requires applicants to submit minutes of Board meetings so that the regulator can check whether there is sufficient discussion of measures to maintain the financial condition of the company and ensure the security of its computer system.

The Agency plans to " assess whether the heads of companies are properly involved in the decision — making process by reviewing the records of the meetings of the Board of Directors," the sources said. "The updated screening process also implies a regular review of the applicant company's shareholder composition, checking whether there is an internal system to verify references to anti-social groups."

On-site inspections
After hacking Coincheck in January, the FSA began inspecting 23 crypto exchanges. Recently, the Agency released a report on its findings, which "found sloppy internal controls", including "the lack of minutes of meetings of the Board of Directors", — stated in the publication.

During the audits, the Agency issued business improvement orders for six fully licensed crypto-exchanges. In addition, 13 of the country's 16 quasi-operators (crypto-exchanges that are allowed to operate while their licensing is under review) have withdrawn their license applications. There are only three quasioperational: Coincheck, Lastroots and Everyco's Bitcoin. This week, the e-Commerce giant Rakuten Inc. announced that it is acquiring Bitcoin Everybody and will start working under the group's brand.

Meanwhile, about 160 crypto-exchange operators are currently interested in entering the Japanese market, the FSA reported last Wednesday. This is a significant increase compared to the previously disclosed data, according to which only 100 companies offering services for buying, selling and exchanging cryptocurrencies were going to start working in Japan.

Link to information resource - https://altstake.io/news/yaponiya-predstavlyaet-novye-trebovaniya-kriptobirgham