Japan`s Financial Services Agency has rejected a cryptocurrency exchange for the first time. Yokohama-based FSHO has been denied a license on permanent basis. the exchanges services have been suspended twice already, and this is the third time, which is permanent.
The exchange has had several issues, the most serious among them were non sufficient verification of customers identity and the general lack of capacity to operate the business properly.
For now, FSHO is one of the two cryptocurrency exchanges in Japan, who have received repeated warnings. The first cryptocurrency exchange was Coincheck, that has become famous with the 532 mln USD hack. This was the biggest cryptocurrency theft in the history of crypto-money.
This ban however means only the best intentions of the Japanese watchdog, which intends to clear up the Japanese cryptocurrency market from dubious services providers.
Since April 2017, all Japanese cryptocurrency exchanges have to get registered under a FSA license, and for that, they shall meet specific requirements. This May the watchdog tightened requirements, while banning anonymously traded altcoins. However, the country is super loyal to all cryptocurrency ventures. Japan is an attractive market for foreign and domestic investors in cryptocurrency, and the requirements are directed only to secure the market and to provide favorable environment rather than imposing any illogical restrictions.