It was revealed earlier this week that the Japanese Financial Services Agency (FSA) is set to impose stricter standards on cryptocurrency exchanges that wish to set up in the country to protect investors from incidents similar to Mt. Gox and Coincheck.
According to Nikkei, a local FSA official said that a “new perspective” was needed to prevent occurrences where an exchange suddenly folds and takes millions of dollars worth of investor money with it. It was pointed out that some were deliberate exit scams that merely seek to dupe investors out of their cryptocurrency.
Nikkei added that the exchanges will be required to meet certain criteria, comply with regulatory oversight and data protection standards, and employ strict verification protocols to be able to legally operate.