The Japan Financial Services Agency (FSA) has revealed that around 50 bitcoin exchanges have filed registration documents with the agency, according to a local publication. They are now being reviewed for compliance.

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50 digital currency exchanges applied

The Japan Financial Services Agency (FSA) has started examining whether exchanges dealing with digital currencies, such as bitcoin, have made any efforts to protect users, the Sankei Shimbun Saturday. The media also wrote that as of June 30:

According to the Financial Services Agency, around fifty registrations have been received.

In April, the Japanese government amended its fund settlement law to recognize bitcoin as a legal payment method, putting the FSA in charge of digital currency. Bitcoin exchanges are then required to register with it.

Businesses operating digital currency exchange offices before April have until the end of September to register. Although no stock exchange has been registered as of July 31, the publication noted that “more than ten out of 20 to 30 companies will register.” However, the post did not say whether the 10 are among the aforementioned 50 apps.

FSA begins to review trade

Before a stock exchange can be formally registered, its application is reviewed by the FSA to ensure that the requirements imposed by the amended law are met. If the agency finds no issues during the preliminary review, the exchange will go through the registration process and begin a full review.

Specifically, the FSA first checks whether the exchange has taken appropriate measures to protect users and correctly communicated to them the risk of loss resulting from price fluctuations, the publication explained. The agency also examines whether the company’s assets are clearly segregated from user deposits as well as controls for an appropriate risk management system which should be regularly reviewed.

Types of exchanges

In Japan, not only are there startups that operate bitcoin exchanges like Bitflyer and Coincheck, but there are also a growing number of large companies that are adding bitcoin exchanges as part of their services.

Before April 1, some companies have already entered space. Remix Point Inc, a publicly traded conglomerate with a market value of around 21 billion yen (roughly $ 192 million), launched the Bitpoint bitcoin exchange in March of last year. Jasdaq-listed financial information provider Fisco Ltd, which recently issued Japan’s first bitcoin-denominated corporate bond, also set up a bitcoin exchange in April last year.

After April 1, some forex brokers started or are starting their own bitcoin exchanges. Internet giant GMO, which operates the biggest The forex broker, GMO Click, launched its own bitcoin exchange in May. Originally called “Z.com Coin by GMO”, the exchange changed its name to “GMO Coin” on August 8th. Other forex brokers entering the space include SBI Holdings and Money Partners Group, but they have yet to announce any opening dates.

What do you think will happen in Japan if the 50 bitcoin exchanges launch soon? Let us know in the comments section below.

Images courtesy of Shutterstock and Nikkei

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