Japan’s FSA Transforms Risk Screening in Crypto Exchanges
The Japan Times announces that the Japanese FSA aims to improve the process of screening crypto exchanges for risks and encourage them to function more efficiently.
The FSA decided not to grade the process and rather focus on the Payment Services Act. The purpose of this approach is to ensure that the accepted cryptocurrency exchanges are in fact implementing risk management effectively.
The FSA also decided to add more questions to the screening application, bringing them up to over 400 questions. This is not the only rule that has changed, however. The regulatory body made it mandatory for the exchanges to allow them to review the records of their board meetings. In addition, the FSA should be allowed to examine the companies’ shareholders. The firm justified the last rule saying it is for them to help filter out criminal groups.
The records of the meetings that should be sent to the FSA should have their time, in minutes, submitted to the agency. They can then be able to evaluate whether or not the company has had enough time to discuss their financial position and overall security.
The FSA is planning to thoroughly study how effective the new crypto exchanges are following the crypto exchange hack in January that cost them $532 million. Also, the FSA’s head, Toshide Endo, revealed in August that the whole process is geared to growing the industry under a correct set of regulations.
The FSA has been looking into changing the legal regulations of crypto exchanges, including making amendments to the FIEA and the PSA, reported Cointelegraph.