Once the Japanese regulator – Financial Services Agency – certified and approved 16 trading platforms dealing with the cryptocurrencies, it is about to set a precedent case and reject the license for one of the exchanges.
According to the news reports, the FSA has decided not to certify Yokohama-based platform – FSHO. The exchange is said to fail to provide the required trading systems.
With this decision, the regulator is reportedly striving to show its positions and intentions to restore the healthy market environment in Japan.
"FSHO has previously issued a business suspension order by the agency, which found that the exchange did not sufficiently verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted," Nikkei Asian reported.
It should be mentioned that after the inspection it was detected that the platform performed insufficient identity verification of the transaction parties suspected in criminal activities or deposit replacement.
As a result, the suspension period for FSHO expires this Thursday, and then the exchange will become unable to operate in Japan.
Meanwhile, 16 crypto exchanges have successfully obtained licenses and run legal business in Japan and this list can be expanded in the future as numerous companies are striving to enter the Japanese market.