Mike’s weekend message to QUOINE community (June 30th, 2018)
I hope you are having a wonderful weekend.
It has been one week since the Japan FSA announced a new set of improvement orders to all major cryptocurrency exchanges in Japan.
While some exchanges are forced to limit their services, we are allowed to conduct our business as usual, which means a lot.
Today, I want to give an update on where we are with the Japan FSA.
We are working closely with the Japan FSA to submit an Improvement Plan by 23rd July and then implement over the coming months.
The necessary improvements are exhaustive but we have the resources and capacity to make this happen. I am confident that we will be one of the first exchanges to complete the necessary improvements.
During this time, we will have to allocate some of our key backend engineers to this effort but we now have more clarity on how much actual allocation needs to go into this JFSA improvement.
Most of our engineers will be able to get back to working on LIQUID in a couple of weeks and I am happy to say with confidence that the delay of LIQUID will not be much.
Separately, another important event happened this week: our 3rd General Shareholders Meeting.
As QUOINE is a company backed by investors and VCs, the Annual General Shareholders Meeting is one of the most important events. This is when we invite all of our shareholders to update our past fiscal year and outline our plan for this year. This is also when we seek approval of our directors including myself as CEO, Mario as CTO, and Katsu as CFO.
We just concluded our 3rd General Shareholders Meeting with strong support and endorsement from our shareholders.
While I was preparing for this shareholders meeting, I was able to step back and reflect on our past year.
As you know, Japan was the First Nation state to regulate cryptocurrency exchanges.
The legislation went into effect last April.
We were the first and only global exchange to be officially registered and licensed on 29th Sept.
We then conducted the first regulated ICO (QASH token) in November.
Then after the new year, the Coincheck incident happened and the pendulum shifted. The government decided to strengthen oversight by conducting onsite inspection of all major exchanges which led to the improvement order last Friday. It truly is extraordinary times.
As the crypto industry goes mainstream, this is the necessary growth pain we all have to go through. There is no such thing as being half compliant. You’re either fully compliant or you’re not.
And as a regulated financial service, there is no way out. Cutting corners is not allowed. Every nation will start regulating crypto exchanges, and either you comply or eventually get busted.
We have always been pro-regulation, and that is why we will survive and become successful.
We are stronger and better than ever.
In the grand scheme, the LIQUID delay will not be much. The QASH utility will expand.
And what we will achieve will have huge societal benefit to this industry.
Please have a wonderful weekend.