Japan’s FSA marks steep drop in enquiries about virtual currencies in Q2 2018

Maria Nikolova

There were 1,602 enquiries registered in the quarter to end-June, compared to 3,559 in the preceding quarter.

Cryptocurrency hype is gradually subsiding in many regions, as already indicated by a number of brokers like IG Group and Plus500. We may be witnessing the same trend in Japan, as the volume of virtual currency enquiries handled by Japan’s Financial Services Agency (FSA) in the second quarter of the year markedly declined from the preceding quarter.

According to the latest numbers, published earlier today by the FSA Counselling Office for Financial Services Users, humble 1,602 enquiries about virtual currencies were received in the quarter to June 30, 2018. This compares to 3,559 such enquiries received in the first three months of 2018.

There were 607 general questions and enquiries (38% of the total), as well as 449 (28%) of questions about individual transactions and contracts.

The FSA did not explain the change in public mood about cryptocurrency. Let’s note, however, that the Japanese authorities have been rather active in their sanctioning of virtual currency exchange providers that fail to meet regulatory requirements. There have been a number of business improvement orders issued by the Japanese authorities over the past several months. Moreover, in early June, the FSA announced it denied the registration of virtual currency exchange business FSHO Co., Ltd. The company falls into the category “a corporation that has not established a system to properly and reliably carry out virtual currency exchange activities”.

In the April-June quarter, the FSA received 2,231 enquiries about investment products, slightly up from the preceding quarter. Across products there were 377 cases (17%) concerning listed shares, 340 cases (15%) concerning FX, and 170 cases (8%) concerning investment trusts.

There were also 138 fraudulent investment solicitation issues, 86 of which included reports of damage.

Read this next


TT’s Keith Todd brings fixed income and cybersecurity to FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Keith Todd about Trading Technologies’ move to fixed income after nearly 30 years of existence. TT is also proposing cooperation and transparency among competitors to tackle cyber risks.

Digital Assets

Binance joins FIDO Alliance to enhance user security with introduction of passkeys

“With passkeys, a user can quickly and safely sign in across multiple sites, apps, and devices with local biometric authorization. Binance will offer users a more secure and streamlined experience using passkeys on our platform without compromising on security”.

Digital Assets

ipaymy taps TripleA in Singapore for rent, invoices, taxes, salaries in Crypto

“Our white label crypto payment solution enables our partners to reap the benefits of accepting crypto payments, without managing crypto on their balance sheets. This makes it an ideal solution for businesses looking to offer cryptocurrency payments volatility-free.”

Industry News

London and New York rank joint first as top financial centers, according to…London

“The UK remains one of the most open and global financial centres with better access to international markets than the US, France, or Japan. But our competitive advantage is at risk.”


Sterling Trading Tech (STT) discusses their Risk & Margin System at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Chief Customer Officer Keith Cacciola and Managing Director of Business Development Andrew Actman about STT’s competitive advantages, the challenges their clients face today, the firm’s product roadmap and new leadership at STT.

Institutional FX

Swedish online brokerage pioneer Nordnet deploys Citi Securities Lending Access platform

“Nordnet was one of the first online brokers in Sweden and has since expanded into a pan-Nordic leading digital platform for savings and investments. We are proud to add this collaborative initiative to our ever-growing list of market innovations for our customers.”

Digital Assets

Elwood integrates Fireblocks to further connect digital asset ecosystem

“As a first port of call, the integration of Fireblocks will enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues, including their Fireblocks movements and balances.”

Industry News

OKX to open office in Australia, starts rivalry with Kraken in Formula 1

“Our ambition is straightforward – to become the leading crypto platform in the world. We see Australia as an indispensable part of this strategy and a key growth market.”

Executive Moves

Freemarket taps Greg Sherwin as CTO of international payments and FX-focused fintech

“At Freemarket, we are focused on providing the best optimized cross-border payments and currency exchange service to our customers and Greg’s exceptional technology expertise will help us deliver even more for our customers and support their future growth and success.”