The Japanese Financial Services Agency (FSA) has been busy with more than 100 applicants awaiting approval to operate cryptocurrency exchanges, local press reported.

Source

According to Business Insider Japan, these companies include large banks, brokerage firms and large FX companies. The Yomiuri Shimbun newspaper produced a note citing a source that says:

"More than 100 companies are planning to enter the cryptocurrency exchange business, which has kept the FSA busy."

Since Japan legalized Bitcoin and other cryptocurrencies as a payment method in April of last year, encrypted exchanges are required to register with the FSA. The agency began issuing licenses in September of last year. So far, 16 cryptographic exchange operators have a full license, such as Bitflyer, Bitpoint, Bitbank, GMO Coin, Quoine and Tech Office's Zaif.

The company announced its plans to enter the cryptographic space five days after the Coincheck popular exchange was hacked to a value of 58 million yen (approximately USD 583,000) in the NEM cryptocurrency, causing massive media coverage and multiple collective demands. "We will adopt sound security measures," Line Corp president Takeshi Idezawa recently commented.

Applicants need reliable security measures

A source close to the FSA told the media that some quasi-operators have not yet installed sufficient security and client protection measures, so it will be difficult for them to obtain a license. According to the source, for those who can not improve their situation quickly, "the FSA is considering notifying them that their registration has been rejected based on the revised law," the publication explained, emphasizing:

"However, given that these unqualified operators already have customers, there is concern that the distribution of such notices could generate criticism that the FSA is acting with a heavy hand and causing confusion among customers"