The Japanese Financial Services Authority (JFSA) has launched a new review process for companies in Japan who are applying for the cryptocurrency exchange licenses, the financial authority suggests that out of all the applications, seven will be processed in the next two months and will receive their decisions on the case.
The Japanese financial regulator, FSA uses a review process for the screening of all the applications seeking a cryptocurrency exchange license which takes approximately six months for review after the company application is submitted. The process is a lengthy one, as it relies on the submission of 400 questions that help the authority make the decision in favor of the company or against it.
The reviewing process includes a number of steps through which a company’s application is monitored. These different stages help the Financial Services Authority (FSA) examine the applications more thoroughly and take a better decision based on the information acquired using the various stages of the review program. Although the process is long, it is surely a reliable one.
Once the question and answer session in which the company answers to 400 different questions designed by the financial authority officials is completed after receiving all the answers, the first step of the review process begins as the companies are contacted by the financial regulator to verify their businesses and plans accumulated to the businesses, the rules and regulations governed by the company, the analysis of the cybersecurity system of the company, review of the management system and their implications, steps taken towards the anti-money laundering (AML) and counter-terrorist financing for safety of the company and the industry.
These events are covered by the financial regulator’s officials through verification of the company’s operations in person with the company officials.
The first phase of the review program takes around four months for completion after which the application of the company for license acquisition is officially submitted to the financial authority. The Financial Services Authority (FSA) then thoroughly examines the application of the company and reviews the steps in the first phase to come to the conclusion on whether or not a license must be issued to the company and this decision making process by the FSA normally takes two months.
The financial regulator has also stated that twenty-one companies have looked to take part in the first stage of the review process out of which seven have already submitted their applications for a cryptocurrency exchange license and they are currently under review. This means that seven of the twenty-one companies have gone through the extensive phase of the review process and are now only a couple of months away from receiving a decision on their application.
These companies can either get their licenses by the end of the second month from today or can also receive rejections by the financial authority, depends on the credibility of their applications.
Thus, based on the knowledge that we have acquired from the given information, we can conclude that seven companies could be named virtual currency registrars by the end of March this year, subjective to their credibility and if they are lucky enough.
Many companies have desired to receive cryptocurrency exchange licenses to function legally and under safe government protection in the market that is currently under serious threat, as we have seen plenty of fraudulent activities in the recent past that have somewhat created a sense of fear in the minds of organizations. Therefore, the future of these companies rests in the hands of the Financial Services Authority (FSA) until a decision is made. Tough times, I tell you.