Seven Japanese Cryptocurrency Exchanges In-Line to Receive FSA-Issued Licenses
According to a new press release by the Japanese FSA, the government agency is currently in the process of reviewing seven applications from companies that have applied for licenses to operate as full-fledged cryptocurrency exchanges within the nation. In this regard, a decision is expected to be received within the coming 40-60 days.
A Detailed Look At The Matter
For those unaware of how Japan’s FSA really works, it is worth noting that the financial body employs an extremely lengthy procedure to review each individual application that is submitted to it (a process which can take anywhere between two to six months from the date of submission). Not only that, but the FSA also requires applicants to answer more than 400 questions before they approve or decline any official request that is submitted to them.
As per a spokesperson for the FSA, once they receive the answers, the body speaks with all of the primary applicants so as to verify their company’s business plans and other key governance protocols (such as KYC, AML etc). In addition to all this, the agency also personally verifies the company’s practices in person— following which they decide on whether to issue a license for the firm or not.
As things stand, Japan’s FSA has announced that there are currently 21 companies participating in the first part of the review— out of these firms, seven have already moved on to the crucial “decision phase”. Looking at these numbers we can see that a total of seven companies could now be granted the status of being full-fledged crypto exchanges by the start of the summer.
Last but not the least, it is also worth clarifying that the FSA has made it abundantly clear that it will not be entertaining the possibility of allowing Bitcoin exchange-traded funds (ETFs) to be issued within the nation in the near future.