Japan’s financial regulator has reportedly introduced new screening requirements for crypto exchanges seeking approval to operate in the country. The agency now extends its focus beyond the registrants’ financial health and system safety measures. Among additional criteria are the assessment of the companies’ decision-making process and their links to antisocial groups.
Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals
Specifically, the sources revealed on Saturday that the agency has “increased the number of questions asked when screening applications to about 400 items, up fourfold,” the news outlet conveyed. “Previously, the questions only covered such items as an applicant’s financial status and measures to ensure system safety.”
The sources also told the news outlet:
It [FSA] now obligates applicants to submit minutes of board meetings so it can check whether enough discussions have been held about measures to sustain the company’s financial health and ensure the security of its computer system.
After the hack of Coincheck in January, the FSA started the on-site inspections of 23 crypto exchanges. The agency recently released a report of its findings which “revealed sloppy internal controls,” including a “lack of board meeting minutes,” the publication detailed.
Meanwhile, about 160 crypto exchange operators are now interested in entering the Japanese market, the FSA told news.Bitcoin.com last week. This is a substantial increase from the agency’s previously disclosed total of 100 companies.
What do you think of the FSA’s new requirements? Let us know in the comments section below.
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The post Japan Introduces New Screening Requirements for Crypto Exchanges appeared first on Bitcoin News.
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