FSHO Cryptocurrency Exchange Business In Japan to be First FSA Denial
FSHO is a Yokohama-based trading platform, which has recently submitted an application to be a crypto exchange operator. While Japan has many different exchanges based out of their country, FSHO may soon seen their application denied in the first instance of this situation happening.
The Financial Services Agency (FSA) is in charge of the approvals. However, they cite how the FSHO platform only offers a “sloppy” infrastructure for standard operations, while they also neglect the financial guidelines set out for various exchanges. Originally, FSHO received approval for operation in the country, though there were 15 others that received acceptance. However, recent changes in the FSA policies is now putting all of the cryptos under mandatory review.
This is not the first time that FSHO has been hit with problems. Recently, in March and April, there were two suspensions that the exchange had to deal with for their failure to report high-value trades. The reason that this is so important is because it is one of the most common indications for money laundering.
According to the Nikkei report, “The exchange did not adequately verify the identity of customer in transactions suspected of financial crime.” Then, the report also said, “The FSA aims to demonstrate its attitude toward building a healthy trading environment in Japan by barring an unworthy exchange operator.”
The ongoing criticism of the platform also includes a $530 million theft of NEM tokens from Coincheck. Since this major breech of the security technology, there have been multiple other exchanges that have pulled their application out entirely after being told that they need to make changes in their business.
Presently, there are 16 licenses issued to exchanges, allowing them to operate within Japan. These licenses were granted after the Payment Services Act established bitcoin as a valid and legitimate form of payment within Japan.