Japan sets out to crack down on unlicensed overseas ICO businesses

nBankruptcy commentary: In April last year, Japan formally approved the legal status of cryptocurrency as a payment method and allowed licensed exchanges to carry out related businesses. Since then, Japanese companies have been actively applying for licenses to comply with the regulations. For the first time, Japan’s financial regulator will now warn the first ICO agency that is unregistered and operating in Japan without a license. It is reported that, before that, the Japanese Financial Services Agency has repeatedly suggested that the company cease its business activities in Japan, but the company is not based in Macau. If the company continues to turn a blind eye to the warnings, then the agency will file a criminal complaint against it.n
nTranslation: Clovern
Japan’s financial regulator will issue its first warning after self-denial money is approved as a form of payment by the country’s law. It is reported that an overseas first-time currency issuer lured investors in Japan without a license and repeatedly ignored the agency’s recommendation that it cease its operations.n
FSA warningn

According to the Nikkei newspaper, the Japan Financial Services Agency (FSA) will issue a warning to the first ICO agency that is unregistered and operating in Japan without a license. The media elaborated:n
nThe warning, targeted at the Blockchain Laboratory in Macau, found the company’s activities could cause investors to suffer losses.If the company turned a blind eye to the warnings, the FSA will work with police and consumers The Office of Cooperation cooperates in bringing criminal proceedings. “n
nAccording to the media, “Macau-based Blockchain Laboratory is the first digital currency issuer to raise money in cryptocurrencies.” The company’s activities include cryptocurrencies and ICO consulting services, as well as hosting seminars to attract investors.n
The media reports in detail that the FSA has repeatedly suggested that the company “cease its business operations in Japan but did not succeed.” According to agency officials, the FSA “will issue a direct warning to the company and expose the company’s name on the FSA homepage “If the operator still does not comply, the agency will file a criminal charge against him.n
Operating in Japan requires a licensen
Since the revised Payment Services Act came into effect in April last year, Japan has treated cryptocurrencies as a legal form of payment. The law also requires crypto currency exchanges to register with the FSA. Nikkei stressed that “the law only permits the registration of operational shocks or the operation of an operating agency applying for registration in Japan.”n
The warning issued to Blockchain Laboratories under the revised payment services law will be the first case of FSA. The media said: “This move is part of FSA’s active review of Japan’s unregistered carriers.”n
The revised law prohibits such unregistered exchanges from operating in Japan to attract investors.n
Currently, 16 cryptocurrencies are licensed in Japan and another 16 are under scrutiny, including the recent loss of 58 billion yen (about 533 million U.S. dollars) in Coincheck by hackers.n
Midori Kanemitsu, chief financial officer of Bitflyer, said in an interview with news.Bitcoin.com recently:n
n”People now understand they need to use a secure exchange registered with the FSA that has very high safety standards.”n

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