Japan FSA tightens screening for cryptocurrency exchanges

The Financial Services Agency has effectively tightened its registration screening for cryptocurrency exchange operators in order to examine if risk management is properly carried out, sources have said.

Such registration processes are conducted under the revised Payment Services Act, which came into force April 2017 to protect cryptocurrency users.

The financial industry watchdog increased the number of questions in its screening of applications to some 400 items, up fourfold from the previous level, sources said Saturday.

The FSA now obligates applicants to submit minutes of board of directors’ meetings to check if enough discussions have been made over measures to sustain financial health and ensure security for the computer system, according to the sources.

The agency has resumed screening applications for the registration of cryptocurrency exchange operators, following a suspension caused by the theft in January of customer assets totaling about 58 billion yen…