The Financial Services Agency has decided not to register cryptocurrency exchange operator FSHO under the revised Payment Services Law, sources have said.
To operate a cryptocurrency exchange business, a company must be registered with the FSA under the law, and therefore FSHO will be forced to withdraw from the business.
The FSA twice issued business suspension orders against FSHO in March and April, judging the company's measures against money laundering to be insufficient. However, FSHO is said to have not improved its measures.
If FSHO does not withdraw its application for registration as a cryptocurrency exchange business by Thursday, when FSA's order takes effect, the FSA will reject the FSHO registration. It will be the first such case since the registration system was introduced in April 2017.
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