Five cryptocurrency exchanges have withdrawn their applications to be licensed in Japan, saying they can't meet the government's requirements.

The Financial Services Agency said Thursday that two exchanges, Tokyo GateWay and Mr. Exchange, recently told the government they no longer want to apply for licenses. Three other exchanges: Raimu, bitExpress and Bit Station, dropped out earlier.

Japan has been bullish on virtual money and has set up a system requiring exchanges to be licensed to help protect consumers.

Sixteen exchanges have the licenses.

The FSA said the exchanges that are giving up on being licensed will reimburse their customers before shutting down.