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Japan Cracks Foreign ICO Agency Without A License

Japan Cracks Foreign ICO Agency Without A License

The Japanese Financial Services Authority will issue a warning in Japan for the first time since the legalization of cryptocurrencies. A foreign coin-issuing agency has reportedly attracted Japanese investors without a license, repeatedly ignoring the agency’s advice to cease operations in the country.

FSA’s warning

Japan’s Financial Services Agency (FSA) will issue a warning to an unregistered First Coin Offering (ICO) agency that has been operating in Japan without a license, Nikkei reported. The news agency has worked out:

The alert is issued to the Macau-based Blockchain Laboratory. The agency has decided that the activities of the company could lead to losses. The FSA will work with the police and consumer protection agencies to report criminal consequences if the company does not respond to the warning.

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Japan breaks off overseas ICO agency operates without a license Deposed in Macau, “Blockchain Laboratory operates as an initial coin-offering agency to raise funds using cryptocurrencies,” the publication described. The company’s activities include cryptocurrency and ICO consulting services, as well as investor attraction seminars.

The FSA has repeatedly called on the company “to discontinue its operations in Japan without success,” the paper said. According to agency officials, the FSA will “warn the company directly and name it on the FSA homepage.” If the operator does not do so, criminal charges will be filed.
License needed to work in Japan

Japan crashes overseas ICO agency works without license Since the law on payment services came into force in April last year, Japan has recognized cryptocurrencies as a legal payment method. The law also requires crypto-change to register with the FSA. It “allows only registered operators, or those who have applied for registration, to work in Japan,” Nikkei emphasized.

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The alert to the Blockchain Laboratory will be the FSA’s first under the revised Payment Services Act. “This move is part of the FSA’s more aggressive investigation of unregistered operators’ activities in Japan,” the news agency said, adding:

The revised law forbids such unregistered stock exchanges to work and advertise in the country.

There are currently 16 cryptocurrency exchanges licensed to operate in Japan and another 16 are under review, including Coincheck, which has lost 58 billion yen (~ $ 533 million) in a recent hack.

In a recent interview with news.Bitcoin.com, Bitflyer CFO Midori Kanemitsu said:

Now people know they need to use secure exchanges that are registered with the FSA and have a high security standard.

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What do you think about the action of the FSA? Let us know in the comments below.

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