Japan’s financial agency requests to add 12 more personnel to its team 23034 Financial Services Agency's website
News
Nitin Murali
Sep 13, 2018 at 11:25 PM

Japan’s Financial Services Agency (FSA), in order to deal with new suppliers shifts from the vendor’s inspection to the new supplier registration review.

"The biggest problem is how to deal with new suppliers," said Kiyotaka Sasaki, vice commissioner for Policy Coordination, FSA at a study meeting on the virtual currency exchange business introduced within the agency.

He mentioned that the agency is at the moment running its supervision of crypto exchanges with a 30 member team, whose work is to review the license applications. An addition of 12 personnel has been requested by FSA in FY 2019. The basic reason towards the addition is to strengthen the response to virtual currency exchange operators.

Since the number of dealers who are on the verge of getting a new registration has exceeded 160, FSA has taken a decision to add personnel to the team.

FSA approved the registration of virtual currency exchange traders in December 2005. From then until now, they have been reviewing sixteen cases out of which 12 withdrew their application due to the agency’s request. This was in accordance with a document released after the meeting.

Coincheck, which infamously went through the largest hack in the crypto world on January 18, 2018, waits for a final decision along with three other companies.

FSA is concerned over inadequate AML

The document stressed perturb over inadequate anti-money laundering (AML) and terrorism financing prevention measures within exchanges and also highlights other concerns regarding corporate governance, internal audits, risk management, and compliance, and business models.

As a part of its “ongoing in-depth monitoring, the agency plans to filter its risk profiling methods and to work closely with ministries and agencies in regard to both domestic and international non-registered firms.

The document recapitulates most exchanges’ system personnel has less than 20 manpower, which in turn means that each person was managing digital assets worth $29.6 million.

See Also:

Is Japan’s Internal Affairs Minister meddling with FSA’s crypto probe?

Monero [XMR], Dash [DASH] and other altcoins slammed by Japan’s FSA

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