Just before the new year struck, the Japanese Financial Services Authority (JFSA) teased a handful of amendments to its prestigious crypto regulations. In what appears to be an overwhelming show of support, more than 190 crypto firms have hurriedly sent in requests for regulation from the JFSA so that they can now operate in Japan legally.
The JFSA is already well known for being understaffed, but this new wave of applications will cause an incredible backlog that might take all year to unclog. Keep your eyes on the JFSA hiring board, new posts are bound to pop up in the very near future.
Must Be Regulated to Operate in Japan
One of the key reasons so many firms have handed in applications is the new rule that any crypto firm operating in the country must be regulated by the JFSA. This has spurred all of the unregulated and new companies who wish to operate in Japan to get a move on and get regulated. Everyone wants to be towards the top of the pile, so time is of the essence here. However, the JFSA is well known for taking its time and doing its due diligence before handing out a regulation certificate, so don’t get excited thinking this is a quick five-minute process.
Coincheck Closing in on Regulation
Coincheck has been clamoring for regulated status since it was hacked back in January 2018. Exactly one year later it finally looks like Coincheck will get its regulation certificate in order to expand its operations and add more trading pairs. It has been working for a long time to improve its image and security in order to achieve this regulated status.
Investor Security is Top Priority
The JFSA is always looking for new ways to protect investors without stifling innovation from businesses. Under its new regulations, the JFSA believes it’s giving investors the very best protection from hackers and scam exchanges while making life relatively easy for exchanges looking to operate in the country. Keeping customers safe is well worth the time it takes to become regulated, and is something all exchanges can get behind as a top priority.
It could be quite sometime before all of these applications are finally processed and regulation permits are dished out, but Japan is definitely taking steps in the right direction.