Japan's Financial Services Agency or FSA has tightened its registration screening process for new cryptocurrency exchanges, with additional requirements. With the move, the regulator aims to examine whether the applicants are properly conducting risk management.
As per reports, the number of questions asked in the screening applications has been increased fourfold to about 400 items. The changes include companies' decision-making process and their links to antisocial groups. Earlier, the screening included questions about applicant's financial status and measures to ensure system safety.
The applicants now need to submit minutes of board meetings to check that there were enough discussions about the company's financial health and the security of its computer system. The agency also intends to assess that the company executives are properly involved in decision-making.
The revised registration processes are conducted under the revised Payment Services Act to protect the users of cryptocurrencies.
Following the hacking of crypto exchange Coincheck, Japan's financial regulator had made a widespread crackdown on the country's cryptocurrency exchanges to step up consumer protection. In June, FSA asked six registered cryptocurrency exchanges, including bitFlyer and Quoine, to improve their screening measures, especially those concerning money laundering.
In Japan, more than 160 companies reportedly have shown interest to register as cryptocurrency exchange operators. Major South Korean cryptocurrency exchange Bithumb is said to be planning to expand its operations to Japan and Thailand.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.