Japan Regulators Gives Nod To Crypto Exchanges DeCurret And Rakuten Wallet For April Opening
Japan’s Financial Watchdog Approves Two Cryptocurrency Exchanges
The Japanese Financial Services Agency (FSA) has given two more cryptocurrency exchanges the go-ahead to launch operations in the region, out of the 23 applications lying on its table, according to reports on March 25, 2019.
Fit To Trade
Following the introduction of stringent licensing laws aimed at fostering consumer protection and curbing the activities of bad actors in its crypto space, Japan’s Financial Services Agency (FSA) has been seriously scrutinizing the applications of prospective crypto-linked businesses.
Now, out of the 140 companies that have shown interest in launching a crypto exchange in Japan, the regulator has received the applications of 23 firms, approving just two.
Two lucky firms, e-commerce heavyweight, Rakuten Wallet Co. Ltd. and Decurret Co. Ltd, have reportedly met the stringent requirements of the FSA and the agency has given them licenses to start operating in the state later in April 2019.
As stated in the Rakuten Wallet press release, the firm has made it clear that its primary objective is to launch a highly secure digital assets exchange that would make it easier for users to carry out crypto trading activities and transactions.
“With the concept of ‘connecting and exchanging all values and making transactions easier and faster,’ DeCurret aims to become a significant financial servicer for crypto assets, setting a standard for highly secure and convenient digital currency trading,” declared DeCurret.
Despite the recent slump in the price of bitcoin and altcoins, it’s worth noting that the unfavorable market conditions have not dampened the interest of a vast number of firms looking to launch operations in crypto-friendly Japan.
In a recent interview with one of the leading crypto-focused news sites, the Japanese financial watchdog reportedly stated that:
“The number of companies that have shown interest in launching operations as virtual currency operators in Japan (including preliminary consultation/ inquiries regarding registration) is now over 140 since March 2018.”
Importantly, the FSA has also reportedly hinted that out of the 23 entities that have submitted the questionnaires it gave to them so far, seven firms were able to proceed to the main evaluation process and out of the seven, only Rakuten Wallet and Decurret have received licenses.
The agency claims that it spent about “six months to conduct the required procedure from the valuation process to getting them registered as cryptocurrency broker-dealers.”
A Long Time Coming
Formerly known as Everybody’s Bitcoin, the wholly-owned subsidiary of Rakuten Group, a firm providing internet and financial technology-related services to clients in more than 30 countries and regions across the globe, with nearly 1.3 billion members worldwide, changed its name to Rakuten Wallet Inc. on March 1, 2019.
Reportedly, the crypto exchange application of Everybody’s Bitcoin has been with the FSA since September 2017, but the agency only decided to give the firm its nod now, though it has been offering clients cryptocurrency trading services as a “deemed virtual currency exchange service provider” ever since.
Since the Coincheck cryptocurrency exchange heist of 2018, which saw half a billion dollar worth of NEM altcoin stolen from the platform, the FSA has increased regulatory oversight, in a bid to ensure crypto market participants put in place proper measures to safeguard customers’ funds.
With 19 exchanges now fully registered by the FSA, it remains to be seen how many more will be approved in the coming months.