Japan Hits 6 More Crypto Exchanges With ‘Business Improvement Orders’ | Tech News

Japan’s financial regulator the Financial Services Agency (FSA) has sent business improvement orders to six major cryptocurrency exchanges, Cointelegraph Japan reports June 22.

According to press releases listed on its website, the FSA has demanded a risk management overhaul – centered on anti money laundering (AML) and know-your-customer (KYC) requirements – from bitFlyer, Quoine, BTC Box, Bit Bank, Tech Bureau and Bit Point.

As Cointelegraph Japan reports, bitFlyer, currently the 23rd exchange in the world by trade volume, has already begun remedial measures in response to its order, halting new account registrations and reviewing user identification documentation.

The FSA concluded that in bitFlyer’s case, “an effective management management system has not been established to ensure proper and reliable operation of the business, as well as countermeasures against money laundering and terrorist financing.”

Responding to the findings, the exchange was noticeably apologetic to users, saying it would carry out the eleven-point order, which also requires it to submit a progress report by July 23.

“We apologize to all concerned and the customers who have caused a great deal of worry and inconvenience due to this business improvement order,” officials stated.

The latest round of “administrative penalties” for Japanese exchanges continues an FSA policy which began following Coincheck’s massive $530 million hack in January.

In the intervening period, various other operators have received penalties or have closed altogether, like Bit Station and FSHO earlier in March.

Coincheck itself received stringent supervisory measures before being sold to online broker Monex for the nominal sum of $33 million in April.

You might also like More from author