The Financial Services Agency (FSA) of Japan has announced the approval of four more cryptocurrency exchanges following regulatory reviews. This latest batch brings the total number of licensed exchanges in the country to 15 since the enforcement of the Payment Services Act on April 1, which recognized Bitcoin as a legal payment method.
Key Developments
December 1, 2017: The FSA greenlit four new exchanges:
- Tokyo Bitcoin Exchange Co.
- Bit Arg Exchange Tokyo Co. Ltd
- FTT Corporation
- Xtheta Corporation
- September 29, 2017: Initial approval was granted to 11 exchanges, with 17 others under review. Twelve applicants failed compliance and ceased operations.
Approved Trading Pairs
While three exchanges are limited to Bitcoin trading, Xtheta Corporation supports a broader range, including:
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ripple (XRP)
- Litecoin (LTC)
- Ethereum Classic (ETC)
- NEM (XEM)
- Monacoin (MONA)
- Counterparty Tokens (XCP)
Regulatory Background
The FSA requires all crypto exchanges to register under the Payment Services Act, ensuring compliance with anti-money laundering (AML) and cybersecurity standards. This framework aims to protect investors while fostering innovation in Japan's crypto market.
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Industry Impact
- Coincheck, Japan’s second-largest exchange, remains under review after submitting its application on September 13. The platform assures users of uninterrupted services during the evaluation.
- The FSA continues to assess pending applications, reflecting Japan’s cautious yet progressive stance toward cryptocurrency regulation.
FAQs
1. What is the Payment Services Act?
Enforced in April 2017, this law legalized Bitcoin as payment and mandated FSA registration for crypto exchanges to operate in Japan.
2. How many exchanges are currently approved in Japan?
As of December 2017, 15 exchanges have received FSA approval.
3. Which cryptocurrencies can be traded on newly licensed exchanges?
Most support Bitcoin, while Xtheta Corporation offers eight additional altcoins.
4. What happens to non-compliant exchanges?
Twelve applicants shut down after failing to meet FSA requirements.
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Future Outlook
Japan’s regulatory clarity positions it as a leader in crypto adoption. The FSA’s rigorous vetting process balances market growth with consumer protection, setting a benchmark for other nations.
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