Large Corporations Are Upgrading The Japanese Cryptocurrency Exchange Ecosystem
Large Corporations Changing The Japanese Cryptocurrency Exchange Ecosystem
It’s a new dawn for the Japanese cryptocurrency ecosystem, as government-licensed digital assets trading platforms are now undergoing massive changes with big whales entering the industry. According to latest reports, the nation’s top financial regulator has revealed the potential regulatory implications of the rapidly evolving business models and internal infrastructures of licensed bitcoin trading venues.
The Japanese Crypto Evolution Is On
Per sources close to the matter, existing exchanges in crypto-friendly Japan are rapidly transforming their operations due to the entrance of larger players into the system.
According to the nation’s highly reputed financial watchdog, the Financial Services Agency (FSA), when an existing digital assets exchange in Japan is acquired by another firm, there is no need re-register the business.
However, if the acquisitor intends to change the existing business model and other processes, the FSA will rigorously review the new business processes to ensure it complies with the existing laws.
Also, “If there are significant entry changes (such as major shareholders or board members) in the registration application, notification of those changes must be submitted.”
As part of its routine check on all platforms that have undergone internal changes, the FSA raided two cryptocurrency exchanges, Huobi Japan and Fisco Cryptocurrency Exchange.
Notably, Huobi Japan recently acquired Bittrade exchange, while Fisco Cryptocurrency Exchange took over the previously hacked Zaif exchange.
More Exchanges Emerge In Japan
Earlier in February, a subsidiary of yahoo Japan Corp. took over a regulated exchange called Bitarg and did a change of name to Taotao in February. The Taotao exchange has since started its pre-registration process and it's expected to commence operations in May 2019. The financial regulator has given Taotao the go-ahead to offer only bitcoin trading on its platform.
Japan’s largest e-commerce platform, Rakuten Inc., has also joined the cryptocurrency bandwagon with the acquisition of Everybody’s Bitcoin exchange and succeeded in chainging the name to Rakuten Wallet on March 1, 2019, while the existing service came to a close on March 31.
Decurret exchange also launched operations on April 15, 2019, and it currently supports bitcoin (BTC), ether (ETH), bitcoin cash (BCH), litecoin (LTC) and XRP.
Formerly Bittrade exchange, Huobi Japan now offers support for BTC, ETH, XRP, LTC, MONA and BCH.
Exchanges Must Make Their Choice Of Coins Known
Importantly, all approved exchanges are required to declare the exact number of digital assets they intend to support, at the time of their application with the FSA and all the 19 registered exchanges in Japan have undergone the process.
In the same vein, when a registered exchange is interested in adding or delisting any coin, they must first notify the regulator in advance.