Tokyo, Japan –Japan’s Financial Services Agency (FSA) confirmed reports that eight cryptocurrency exchanges expressed their desire to exit the Japanese market.
The news comes after a meeting held by the FSA last week, which was attended by representatives from the Ministry of Justice the Bank of Japan, the Ministry of Finance and the Consumer Affairs Agency.
After the Japanese government started imposing changes in licensing for cryptocurrency exchanges, the FSA confirmed that several “deemed dealers” expressed their desire to terminate their application for cryptocurrency exchange operations.
According to the FSA, one out of the eight companies believes it no longer falls under the limits of the licensing requirements, while the remaining seven are no longer interested in pushing through with their applications.
“Eight deemed virtual currency exchange companies announce the intention to withdraw registration applications…One company confirms that it does not fall under the virtual currency exchange industry as a result of grasping the actual situation in detail,” the FSA said.
The FSA names the seven crypto exchanges as follows:
• Mr. Exchange
• Bit Station
• Tokyo Gateway
• Payward Japan
Debit completes the list as the eight companies that no longer requires a license from the FSA.
This news comes after a period of instability in Japan’s cryptocurrency industry, as the government pushes for stricter regulations.
But, despite the issues to operating crypto exchanges in the country, the FSA disclosed that over 100 new entrants are ready to start their own applications among which includes CyberAgent, Japans’s leading online TV and advertising platforms.
CyberAgent has long been planning to launch its own cryptocurrency. It plans to move towards a cryptocurrency exchange through CyberAgent Bitcoin, its subsidiary.
CyberAgent CEO Susumu Fujita, however, was quoted saying it would take its time to complete the path towards accreditation.
“There are risks that we should not undertake when compared with other projects. Entry is slow in the first place. The examination by the Financial Services Agency is becoming severe,” Fujita said.