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Japan will increase control over the crypto-exchange exchanges

The Japanese Financial Services Agency (FSA) intends to intensify its monitoring activities on licensing exchanges, as well as tightening requirements for companies wishing to obtain permission for crypto currency exchange operations.

Not long ago, the agency completed a series of inspections of existing exchanges and expressed concern about the low level of security and the lack of combat against money laundering. According to the official representative of the FSA, many large platforms have seen a rapid increase in trading volumes since last fall. But, during the increase in operations, most companies do not keep up with the achievements in their internal control systems.

The agency claims that in some cases only two employees are charged with managing crypto-currency assets for up to $ 30 million. Also, in more than 75% of exchanges, the staff consists of 20 people, or even less a number that FSA believes is inadequate to deal with potentially huge amounts.

FSA officials believe that, despite a number of warnings, many exchanges remain weak in countering money laundering and combating crime. The agency plans to make changes to the Japanese laws, which would allow more carefully regulate the activity of exchanges in the future. In addition, the new exchanges, upon obtaining a license, will have to provide documents regarding their business plans and internal control systems, as well as pass the FSA audit.

Now we can observe how more and more countries are trying to regulate or even partially legalize the activities related to the operations in the market of crypto currency. This is a positive moment for the market, as the recognition of digital assets by states will lead to increased confidence from private investors.

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