Seven Digital Currency Exchanges in Japan Could Obtain FSA-Issued Licenses within Two Months
As per a new insight into the Japanese financial agency’s review procedure of companies implementing for a digital currency exchange license, seven applications will be either accepted or disapproved in two months. Cointelegraph Japan published on this growth on Jan. 12.
The new details in respect to the review process provided by the Financial Services Agency (FSA) disclosed that it encircles a lengthy process that nearly takes six months from the time of application, which comprises the submission of answers to over 400 questions, for officially declining or approving.
Articulating to Bitcoin.com, an FSA representative mentioned:
“There is no such fact that we are considering approving ETFs which track crypto-assets at present. We are not currently considering approving them.”
Though, in a statement, an FSA spokesperson stated that the agency does not identify the requirement of any cryptocurrency-based derivatives as of now, solidifying its stance against both crypto ETFs and futures products.
“Taken it into consideration that it is difficult for us to find the constructive and social significance of trading crypto-assets derivatives at present, we think that there is no need for trading crypto-assets derivatives at financial instruments exchanges where many market participants are able to trade,” the representative described.
As per the FSA’s explanation, after obtaining the answers, the agency interacts with the company to authenticate its business plan, cybersecurity, governance, management system, and anti-money laundering (AML) and counter-terrorist financing. In this phase of the review, the agency’s officers will personally authenticate the company’s practices in person.
After this first phase — which supposedly takes about four months — the company formally submits their application to the FSA. The agency at this point verifies the application and decides whether or not to publish the license within two months.
The FSA has professed that there are 21 companies contributing in the first part of the review, and seven are already in the decision phase. It can be inferred from this data that up to seven companies could be assigned a new license by the summer.
As Cointelegraph lately declared, the FSA has denied that it is deeming permitting Bitcoin (BTC) exchange-traded funds (ETFs), a rumor that had been lately advised by major financial publication Bloomberg.
The FSA is also deeming the regulation of unregistered firms that solicit investments in digital currencies, as Cointelegraph published on Jan. 8.