The Japanese regulator has revealed new violations in the work of kryptomere
The financial services Agency of Japan (FSA) continues to fight for higher standards of cripture. This time got not only licensed exchanges, as those who have just applied for a license.
The FSA published the results of inspections affect the 30 entrants, of which only 7 are licensed of crypto currency exchange. The remaining 23, the so — called authorized dealers, crypto currency exchange, whose applications for licenses are pending.
The findings of the regulator is quite clear — crypto currency exchange appear like mushrooms after rain, but the market, and hence the volume of transactions is growing even faster, and the exchange can’t handle him.
Many of them are simply not enough staff to meet all of the requirements for the safety of funds and customer information, as well as to combat money laundering.
According to the report, the total turnover of cripture for the year increased by six times. A typical crypto currency exchange is at least 20 employees, including top managers. Given the size of the assets held in custody, per employee, on average, more than 3.3 billion yen (about us $30 million), said the FSA.
FSA has not issued new licenses since the break Coincheck — before the Agency is now more than a hundred applications. According to Japanese press, the closest to obtaining coveted licenses now three or four companies, including the same Coincheck.
The application serves major banks, technology companies and operators in the securities market, however, the process is moving much slower than they would like.
In the FSA do not hide that the result of verification haunts including educational goal — as stated by the representative of the Agency, companies that have already applied, “it would be worth examining the validation report and to compare the detected violations and weak points with your situation.” The procedure of registration of exchanges is changing, and priority will be the protection of investors, notes the regulator.
Recall that the same concern for the protection of investors, according to FSA, is a compelling reason for the impending tightening of the rules of exchange trading in cryptocurrency.
Virtual currency should be clearly positioned as an investment asset, and the legal system must protect the interests of investors, emphasized in the Agency.
Apparently, this initiative should also include preparation for the change of the legal status of crypto-currencies by means of payment on the financial instrument previously announced.