Japan’s FSA Adds More Personnel Amid Deluge Of Crypto Exchange Applications

Sep 14, 2018 at 1:59

Japan’s financial regulatory office is looking to beef up its manpower to screen applicants after receiving an overwhelming number of applications to operate cryptocurrency exchanges in the country.

Financial Services Agency (FSA) vice commissioner for policy coordination Kiyotaka Sasaki said the biggest challenge of the agency is how to deal with applicants, Reuters Japan reported.

Despite a tighter process, the agency has received new registration from over 160 companies to date.

The team handling the new applicants is only composed of 30 personnel. However, the team is not exclusively reviewing registration, they also monitor virtual currency traders and supervise unregistered contractors.

This is why the FSA is working on hiring more people to do the review process of applicants, Sasaki said.

It is requesting to bump up the 30-man team with an additional 12 persons as the regulator strengthens the screening process for new registrants.

Earlier this month, the FSA implemented a stricter registration screening process by increasing the number of questions by four-fold to 400 and by adding a requirement of submitting minutes of board meetings to check whether the companies regularly apply measures to keep its financial health and security systems in check.

The FSA had previously suspended its screening process after the $530-million hacking incident on Coincheck Inc., last January—considered as one of the biggest cyber heists on record.