Japanese FSA Issues Licenses to 11 Cryptocurrency Dealers

The Japanese government has taken a pro-active approach, taking its cue from the Mt. Gox disaster.

A total of 11 companies have received a cryptocurrency dealer license from the Japanese Financial Services Agency (JFSA). The firms notably include companies related to the retail foreign exchange arena in Japan – Money Parters and GMO Coin.

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A revision in Japanese law in April ordered companies that deal with cryptocurrencies to become licensed by the financial regulator. The Japanese Treasury Department appears to have taken a different approach to many other jurisdictions.

While the decision may seem pro-active, it was most likely driven by the demise of Mt. Gox, one of the first major exchanges for cryptocurrencies.

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The licenses come with a list of disclaimers from the FSA stating that the Japanese Treasury does not guarantee or control the value of digital currencies. Authorities also highlight that cryptocurrencies are not necessarily backed by any assets.

The list of Japanse FSA-regulated cryptocurrency dealers also includes QUOINE, BitFlyer, Bit Bank Corporation, SBI Virtual Currencies, Bit Trade, BTC Box, Bit point Japan, Fiscal Virtual Currency Exchange, and Tech Bureau.

Fraud Warnings

Despite licensing the asset class operators, Japanese authorities are warning about the rise of cryptocurrencies and the number of fraudulent coins out there. The Japanese public is advised to be vigilant of unlawful activity.

Hours ago, the Financial Services Commission of Korea banned all initial coin offerings as well as leveraged trading of cryptocurrencies, echoing China’s recent move. This was a prudent action, as the authorities seek to protect unsophisticated investors from trading excessively volatile instruments such as cryptocurrencies.

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