• NOW

News

  • NOW
New regulation in Japan requires bitcoin exchanges to register with Financial Services Agency

New regulation in Japan requires bitcoin exchanges to register with Financial Services Agency

According to The Japan Times, a new law has been passed in Japan that will require bitcoin exchange operators to register with the Financial Services Agency (FSA) in Japan, who will oversee the exchanges in order to help ensure better protection of users.

Under the revised law which should go into effect within a year, the FSA is authorized to conduct on-site inspections and issue administrative orders as needed. The law’s revision comes more than two years after Mt. Gox, a Tokyo based bitcoin exchange that collapsed in February 2014, taking many customer funds along with it. Mt. Gox creditors are claiming potentially trillions in funds lost on the exchange.

There are a few exchanges in Japan which have been operating with success post-Gox, such as Coincheck, Bitflyer, and Zaif. TechBureau, Zaif’s parent company, recently secured $6.2 million in venture capital to expand the exchange operations in Japan.

BitFlyer CEO Yuzo Kano told Bitcoin.com that although he couldn’t speak for all companies, he believed bitcoin exchanges operating in Japan were already compliant with the new laws. Kagayaki Kawabata of Coincheck said the laws were anticipated, but had come sooner than many expected.

Tags in this story
bitcoin exchanges, Bitcoin regulation, Financial Services Agency, Japan, Mt Gox
Related
Bad for Business: How KYC/AML Makes Everyone a ‘Terrorist’
Bad for Business: How KYC/AML Makes Everyone a ‘Terrorist’

Two reports from risk solutions group Lexisnexis assert that anti-money laundering (AML) and know your customer (KYC) policies can negatively… read more.

Court Postpones TON Hearing Till February, Impatient Investors May Get 77% Back
Court Postpones TON Hearing Till February, Impatient Investors May Get 77% Back

The New York court reviewing Telegram’s contested coin offering in the U.S. has postponed a scheduled hearing on the case… read more.

david@bitcoin.com'
David Shares

David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.