Japan's Financial Services Agency (FSA) has announced a comprehensive inspection of 32 cryptocurrency exchanges, comprising 16 licensed platforms and 16 awaiting regulatory approval. This move follows heightened scrutiny after the high-profile CoinCheck hack in January 2023, where hackers stole ¥58 billion worth of NEM tokens.
Licensed Cryptocurrency Exchanges in Japan
Japan has been a global leader in cryptocurrency regulation, granting its first batch of exchange licenses in September 2023 to:
- Money Partners
- Quoine
- Bitflyer
- Bit Bank
- SBI Virtual Currencies
- GMO Coin
- Bittrade
- Btcbox
- Bitpoint
- Fisco Virtual Currency
- Zaif
Four additional exchanges received approval in December 2023:
- Tokyo Bitcoin Exchange
- Bit Arg Exchange Tokyo
- FTT Corporation
- Xtheta Corporation
By year-end, Bitocean also secured a license, bringing the total to 16 fully licensed exchanges.
Exchanges Under FSA Review
For the first time, the FSA disclosed the names of 16 exchanges undergoing compliance checks, including:
- CoinCheck (recently hacked)
- Minnano Bitcoin
- Payward Japan
- Bitcrements (Lemuria Bitcoin Exchange)
- Campfire Corporation
- Tokyo Gateway
- Lastroots Corporation
- Debit
- Eternal Link
- FSHO Corporation
- Kirin Corporation
- Bit Station
- Blue Dream Japan
- Mr. Exchange
- Bmex Corporation
- Bitexpress Corporation
👉 Explore secure trading alternatives
Inspection Scope and Regulatory Response
The FSA’s crackdown includes 43 specific compliance items covering:
- Risk management systems
- Cybersecurity protocols
- Customer asset safeguards
- Anti-money laundering (AML) measures
Exchanges must submit detailed reports by February 13, outlining corrective actions post-CoinCheck incident.
FAQ
Q: Why is Japan inspecting all cryptocurrency exchanges?
A: The audits aim to enhance investor protection and prevent future breaches like CoinCheck’s $530 million hack.
Q: Which exchanges are safest for trading in Japan?
A: Licensed platforms like Bitflyer and Zaif adhere to strict FSA guidelines.
Q: Will CoinCheck users receive compensation?
A: CoinCheck pledged reimbursements but hasn’t finalized timelines.
Q: How does Japan’s regulatory approach compare globally?
A: Japan’s proactive licensing and transparency set a benchmark for crypto regulation.
👉 Compare top-regulated exchanges
Key Takeaways
- Transparency First: The FSA’s public disclosure of under-review exchanges marks a shift toward accountability.
- Security Overhaul: Exchanges must now demonstrate robust defenses against cyber threats.
- Investor Confidence: Licensing ensures platforms meet capital and operational standards.
Keywords: cryptocurrency regulation, Japan FSA, licensed exchanges, CoinCheck hack, crypto compliance
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