Japan Times told, the FSA has updated the registration process, revising the Payment Services Act implemented since 2017 to see whether the cryptocurrency exchanges are properly conducting risk management.
The FSA has added a few new features to the previous act’s legislation, raising the number of questions asked while screening the application to about 400 items, up fourfold.
The FSA will now require access to the digital currency exchange’s board meetings records, and the reviews of the composition of the company’s shareholders to “search for links to antisocial groups.”
As per Japan Times, digital exchanges need to “submit minutes of board meetings so it can verify whether sufficient discussions have been held about measures to sustain the company’s financial health and assure the security of its computer system.”
In August, the FSA had issued the results of its on-site cryptocurrency exchange inspection, came into force after January’s $532 million hacks of Coincheck cryptocurrency exchange reporting that the FSA intends to carefully examine the effectiveness of newly registered digital currency exchange’s business models.
The commissioner of Japan’s FSA, Mr. Toshihide Endo, told Reuters in August that it sees the agency’s aim for developing the digital currency industry as enabling it to “grow under appropriate regulation.”