The total number of legally recognized cryptocurrency exchanges in Japan has reached fifteen.
The Japanese Financial Services Agency (FSA) has licensed four more cryptocurrency exchanges to legally operate in the country.
On December 1st, the Japanese Financial Services Agency (FSA) granted regulatory licenses to four more cryptocurrency exchanges to be able to legally operate in the country as early as December 2017. This is the second time the FSA has approved a list of crypto exchanges, as in late September, it awarded registration to 11 digital currency exchanges.
The four exchanges that were approved are Xtheta Corp., Tokyo Bitcoin Exchange Co. Ltd., FTT Corp., and Bit Arg Exchange Tokyo Co. Ltd. Now the total number of legally recognized cryptocurrency exchanges in Japan has reached fifteen. Of the four new exchanges, only Xtheta Corp. has been was authorized to trade multiple cryptocurrencies, while the others are only allowed to trade Bitcoin (BTC). The FSA in a statement posted on its website stated that only the 15 legalized exchanges are permitted to trade virtual currencies as only the cryptocurrencies that they will handle are confirmed to “meet the definition under the fund settlement law.”
With the addition of these four new crypto exchanges, the competition in the Japanese cryptocurrency trading market is going to increase. Reportedly, the FSA is still reviewing a number of applications and so far 12 exchanges who applied were rejected because of their failure to adequately meet the standards outlined in the VCA. The rejected exchanges were required to shut down their operations.
Among the applications currently being reviewed, one is from Japan’s second largest bitcoin exchange, Coincheck. The exchange released a statement on Dec 1, in which it stated that its application to register as a “virtual currency exchange trader” was submitted on September 13 and is still “under review.” However, the exchange said that “we are still able to provide the service as usual.”
The licenses are a part of the Virtual Currency Act. In November, the FSA issued a document regarding its administrative policies including those covering digital currencies and initial coin offerings (ICO). The agency further stated how it will monitor the cryptocurrency exchanges.
At the time when some countries have reacted negatively towards the cryptocurrency and with some even opting for outright bans, the regulatory moves by Japan may have a positive effect on the crypto markets.
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