The Japanese Government Finally Orders a Crypto Exchange to Shut Down
- FSHO is the first exchange to be ordered to close up shop.
To say that the Japanese government has been forgiving towards cryptocurrency exchanges may be too strong of a statement--but not by much.
While the Japanese government has increased the vigilance and strictness with which it enforces the regulations it has set for cryptocurrency exchanges, the government has never gone so far as to actually deny an application for an operational license. Instead, the government has given exchanges who continually fail to meet the application’s standards the opportunity to gracefully withdraw their applications and end their operations on their own accord.
That is, until now.
FSHO Had Already Received Two Business Improvement Orders
The Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term at hand, FSHO, has been allowed to operate in recent months while its application has been under review by the Japanese Financial Services Agency. FSHO is so far the only crypto exchange to have received two business improvement orders from the FSA earlier this year. Both times, FSHO was ordered to temporarily suspend its operations until certain issues were resolved.
According to a report from Nikkei, the Japanese Financial Services Agency’s “decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate its business…by barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its determination to re-establish a sound currency trading environment in Japan.”
The List of Shutdowns Grows
In addition to FSHO, at least seven other exchanges have said that they will be closing up shop.
The FSA originally began ramping up enforcement of exchange regulations following the $530 million Coincheck hack that took place earlier this year. In the wake of the hack, FSA agents began conducting in-person inspections of exchange offices.
So far, 16 exchanges have successfully registered with the FSA. However, “some operators see little prospect of meeting the agency’s standards,” according to a Nikkei report published in late March.
To say that the Japanese government has been forgiving towards cryptocurrency exchanges may be too strong of a statement--but not by much.
While the Japanese government has increased the vigilance and strictness with which it enforces the regulations it has set for cryptocurrency exchanges, the government has never gone so far as to actually deny an application for an operational license. Instead, the government has given exchanges who continually fail to meet the application’s standards the opportunity to gracefully withdraw their applications and end their operations on their own accord.
That is, until now.
FSHO Had Already Received Two Business Improvement Orders
The Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term at hand, FSHO, has been allowed to operate in recent months while its application has been under review by the Japanese Financial Services Agency. FSHO is so far the only crypto exchange to have received two business improvement orders from the FSA earlier this year. Both times, FSHO was ordered to temporarily suspend its operations until certain issues were resolved.
According to a report from Nikkei, the Japanese Financial Services Agency’s “decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate its business…by barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its determination to re-establish a sound currency trading environment in Japan.”
The List of Shutdowns Grows
In addition to FSHO, at least seven other exchanges have said that they will be closing up shop.
The FSA originally began ramping up enforcement of exchange regulations following the $530 million Coincheck hack that took place earlier this year. In the wake of the hack, FSA agents began conducting in-person inspections of exchange offices.
So far, 16 exchanges have successfully registered with the FSA. However, “some operators see little prospect of meeting the agency’s standards,” according to a Nikkei report published in late March.