Japan’s Financial Services Agency (FSA) will fortify the process of registration screening for cryptocurrency exchanges, local media outlet The Japan Times reports September 2.
The Agency has ungraded the registration process, revising the Payment Services Act — enforced since April 2017 — in order to see whether crypto exchanges are properly conducting risk management.
The FSA has added several new features to the previous act’s legislation, increasing the number of questions asked when screening applications to about 400 items, up fourfold.
The FSA also will now require access to the crypto exchanges’ board meetings records, as well as reviews of the composition of the company’s shareholders in order to check for links to antisocial groups. Crypto exchanges must submit minutes of board meetings so it can check whether enough discussions have been held about measures to sustain the company’s financial health and ensure the security of its computer system.