Japan’s burgeoning Bitcoin exchange scene will face constant surveillance from authorities when new legislation becomes effective Oct. 1.

In accordance with laws legalizing Bitcoin in April, Japanese exchanges must register with the country’s Financial Services Authority (FSA) by the end of September.

Licensing new exchanges has picked up pace since news of the law surfaced, with over 50 licensees going through the pipeline, and 18 in the first month alone.

Now, however, authorities have reiterated the need for a controlled environment, local news media reporting exchanges could be subject to physical inspections “if necessary.”

Commenting to Japan Times, a spokesman for the FSA remained ambiguous as to the nature of the plans.

“We pursue both market fostering and regulation enforcement,” he said.

August meanwhile saw the FSA create a 30-member team tasked specifically with ensuring exchanges continue to abide by the new requirements after the deadline.

This will include, Japan Times reiterates, “checking whether virtual currency exchanges manage customer assets separately from their own assets and whether they have appropriate risk management measures, including how to respond to cyberattacks, in place.”

The overall mood in Japan’s 70 percent cash economy is changing rapidly, in digital currency’s favor.

This week, the country’s banking sector announced plans for a potential national currency dubbed J-Coin, with an aim of replacing cash transactions as soon as 2020.