The country being the first to implement registration systems for Cryptocurrency exchanges and one of the countries that currently still permit ICO is surely a country where cryptocurrency is almost regulated.
Japan got an horrible score for identity verification in financial institution in 2008 which was compiled by the Financial Action Task Force (FATF). Japan has since been dealing with this and hoping to prevent a possible re-occurrence.
This has not left out Cryptocurrency exchanges. The country already has a freamework for cryptocurrency exchanges registration and management. All exchanges in the country must be registered and allowed to trade. This may be partly due to the fact that FATF amended its rule in October to include crypto exchanges in its AML regulatory framework, notified G-7 member countries to start implementing strategies for management of cryptocurrency exchanges which include resistration, lisensing and monitoring.
The FATF is set to visit the country this fall and Japan is doing all it counld to prevent a bad grade; that is why Japan’s Financial Services Agency (FSA) is now cracking down on cryptocurrency exchanges to check anny form of illegal operation.
For the exchanges, illegal operation will include a non-standard identity verification, illegal transaction and fake exchange volumes.