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Cryptocurrency

11 Japanese Bitcoin exchanges receive FSA license

Juhi Banu | Oct. 2, 2017
11 Japanese Bitcoin exchanges receive FSA license

While neighbours of Japan are tightening their grip on virtual currencies, 11 Japanese Bitcoin exchanges receive FSA license to operate cryptocurrencies. Not only that, the country is considering to set up its own digital currency called the J-Coin. So, Japan's move in supporting digital currencies made us think that will China and South Korea keep their ban on Bitcoin?

2 October, AtoZForex - Japan’s Financial Services Agency (FSA) has approved 11 firms as operators of bitcoin exchanges. The move is a part of the government’s plan to bring cryptocurrency trading under supervision. However, the Japanese government recognized bitcoin as legal tender in April and required cryptocurrency exchange operators to register with it.

11 Japanese Bitcoin exchanges receive FSA license

According to reports, the watchdog laid out several requirements, such as building a strong computer system and checking the identity of users. The new regulation aims to balance the need to protect investors with the need to support fintech innovations. One of the registered companies bitFlyer claims to have more than 800,000 users. The company's CEO Yuzo Kano said the new rules cement Japan's position as the epicenter for bitcoin.

“Japan has been exploding with demand for both bitcoin trading as well as virtual currency services,” bitFlyer said.

QUIONE CEO and co-founder Mike Kayamori  said in a separate statement that:

“As the first global crypto fintech company to be fully licensed with the FSA, we will keep on working hand in hand with regulators and other stakeholders towards the healthy development of the cryptocurrency industry within Japan and on a global scale. 

Protection of customers’ assets is of the highest priority to us,” he added. “With our FSA license, this is a positive market signal that we are here to build a trusted exchange, with proper compliance measures in place to prevent security breaches and provide more asset protection for our customers.”

Will China and South Korea keep their ban on Bitcoin?

Japan moved to license bitcoin exchanges when its neighbors have moved in restricting and banning the use of cryptocurrencies. China started the trend, first banning initial coin offerings (ICOs) and banning bitcoin exchanges altogether.

South Korea is currently going down a similar path by banning all forms of virtual currencies. In the same way, the Japanese officials said they have no plan to ban initial coin offerings (ICOs). Although they have launched few more token-based digital currencies in Japan to date. Additionally, the FSA is still reviewing registration applications from 17 other exchange operators.

Also according to the reports, Japanese banks are also considering to set up their own digital currency called the J-Coin.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.