The Japanese Financial Services Agency (FSA) was reportedly handed 190 cryptocurrency exchange license applications.
This flood of applications looks to back-up the FSA’s desire of helping the sector grow under suitable regulations which do not hinder the industry, according to a report from Cointelegraph Japan.
Tougher scrutiny has been placed on crypto exchanges in Japan as a result of the $530m Coincheck hack which took place last January. After the incident, the FCA confirmed it would look to enforce stronger legislations.
Over the past year, Japan has given a lot of time to regulate and support the use of cryptocurrencies and exchanges. The country imposed stricter laws on the exchanges by incorporating them under the legal jurisdiction of the Financial Instruments and Exchange Act (FIEA).
Under this legislation, exchanges are mandated to comply with the same laws that apply to stock brokerages and financial securities firms.
In a bid to further aid the sector, the FSA recently gave self-regulatory status to the space, with the Japanese Virtual Currency Exchange Association as overseers. This means they are responsible for ensuring the establishment of AML policies and sufficient guidelines for crypto exchanges.
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