It is a well-known fact in the cryptocurrency world that the Financial Services Agency of Japan is pretty proactive in enacting the cryptocurrency based regulations. Recently, the financial regulator of Japan completed the on-site inspection of 23 different cryptocurrency exchanges. Even though the agency found quite a few problems at this cryptocurrency exchanges but the truth is that these were proactive moves. None of the other countries are conducting such inspections. That is why the financial services agency of Japan is actually pretty proactive.
Additionally, it has over 100 applications of several different cryptocurrency exchanges which will legalize their operations as well. This clearly indicates that many of the cryptocurrency exchanges are looking to legitimize their operations.
Results of the inspections:
When you look at the results of the inspections, you will realize that only 7 out of these 23 cryptocurrency exchanges are actually legalized. The others are just a known by the name of deemed dealers. Needless to say, there were some shortcomings. The financial services agency of Japan has already sent guidelines to the cryptocurrency exchanges which are not abiding by all the rules and regulations. It will give them more than enough time in order to abide as well. As long as they are able to abide, it will become easier for them to get the license as well.
Using the findings of the inspections:
In the future, the financial services agency of Japan will be using the findings of the inspections in order to curate the applications which it is receiving for the newer cryptocurrency exchanges as well. Thus, the process of granting the licenses to the newer cryptocurrency exchanges will become more robust. When indeed that happens, you can be sure that the cryptocurrency exchanges which will be launched in Japan will be much better as compared to anywhere around the world. Financially, as well as security-wise they will be in a much better shape. This will actually help the investors safeguard their assets.
With the financial services agency in Japan taking so many different proactive steps, it remains to be seen whether the investment in cryptocurrencies in Japan increases or not. As the cryptocurrencies are in a downward trend, not many investors are actually coming forward to invest in cryptocurrencies. It remains to be seen whether this will change in the very near future or not.
With more secure cryptocurrency exchanges, certainly, investors will find it easier to invest in cryptocurrencies. The cryptocurrency market and volumes in Japan will increase even more.