Japan's Financial Services Agency (FSA) has approved four additional cryptocurrency exchanges to operate legally within the country, following a rigorous review process. This marks the second wave of approvals after 11 exchanges were licensed in September 2023.
Regulatory Framework and Compliance
The FSA has published detailed information about the newly approved exchanges on its official website. According to the agency, only cryptocurrencies processed by these 15 licensed platforms qualify under the "Payment Services Act", which:
- Recognizes Bitcoin as a legal payment method in Japan
- Requires all cryptocurrency exchanges to register with the FSA
- Came into effect on April 1, 2023
Newly Licensed Exchanges
The four newly approved platforms include:
- Tokyo Bitcoin Exchange Co., Ltd.
- Bit Arg Exchange Tokyo Co., Ltd.
- FTT Corporation
- Xtheta Corporation
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Approved Cryptocurrency Trading Pairs
FSA's authorization details reveal distinct trading permissions:
| Exchange | Approved Cryptocurrencies |
|---|---|
| First 3 Exchanges | Bitcoin (BTC) only |
| Xtheta | ETH, BCH, XRP, LTC, ETC, XEM, Monacoin, Counterparty tokens (plus BTC) |
Ongoing Regulatory Scrutiny
The FSA continues to evaluate several applications. Key developments include:
- 17 companies were under review as of September 2023
- 12 applicants failed to meet registration requirements and subsequently ceased operations
- Coincheck (Japan's second-largest Bitcoin exchange) remains under review since submitting its application on September 13
Coincheck has reassured users that all services continue uninterrupted during the evaluation period.
Policy Advancements
Last month, the FSA released a comprehensive policy document clarifying:
- Regulatory approaches to digital currencies and ICOs
- Specific oversight mechanisms for cryptocurrency trading
- Compliance requirements following the initial 11-exchange approval
Market Impact and Future Outlook
This expansion of licensed exchanges demonstrates Japan's progressive stance on cryptocurrency regulation, balancing innovation with consumer protection. The 15-operator ecosystem now offers:
- Enhanced market liquidity
- Improved investor confidence through regulated platforms
- Clear legal frameworks for both traders and businesses
👉 Explore secure cryptocurrency trading platforms
Frequently Asked Questions
Q: How many cryptocurrency exchanges are currently licensed in Japan?
A: As of this approval, Japan has 15 fully licensed cryptocurrency exchanges.
Q: What cryptocurrencies can I trade on Xtheta?
A: Xtheta supports ETH, BCH, XRP, LTC, ETC, XEM, Monacoin, Counterparty tokens, and BTC.
Q: Is Coincheck currently operational?
A: Yes, Coincheck continues normal operations while its license application undergoes FSA review.
Q: What law regulates cryptocurrencies in Japan?
A: The Payment Services Act, enacted April 2023, provides the legal framework for digital currency operations.
Q: How does Japan's regulatory approach compare globally?
A: Japan maintains one of the most comprehensive regulatory systems, requiring exchange registration and compliance audits.
Q: Where can I verify an exchange's licensed status?
A: The FSA publishes updated lists of approved exchanges on its official website.
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