The Financial Services Agency (FSA), based on the results of inspections of local crypto-exchanges, concluded that it is necessary to toughen requirements for new trading platforms.
The report points to the need to tighten the requirements for crypto exchanges that want to obtain a license for operations. FSA will conduct on-site inspections of such companies, as well as carefully study the effectiveness of their business models. According to the agency, “hundreds” of companies are waiting for consideration of their applications.
The regulator also identified some problems related to the peculiarities of the business models of exchanges, focusing on risk management and compliance, internal audit systems and corporate governance. Besides that, FSA expressed concern about insufficient measures to counter money laundering (AML).