Japan has also been a crypto-forward and friendly country, but it seems Japan’s top financial regulator is putting its foot down on cryptocurrency exchanges. Just this morning, the Financial Services Agency (FSA) issued six new business improvements to the list of 16 cryptocurrency exchanges it previously approved.
The list of Japenese crypto exchanges receiving administrative punishment include:
- Bit Bank
- BTC Box
- Bit Point Japan
- Tech Bureau
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bitFlyer In Hot Water
Among the list is Japan’s largest cryptocurrency exchange by trade volume, bitFlyer.
The press release on bitFlyer’s penalties states:
“Because problems were recognized in the internal control system such as money laundering and countermeasures against terrorism funds, separation of user property separately, management of books documents, prevention of illegal outflow of virtual currency due to unauthorized access, Today, based on the provisions of Article 63-16 of the Law, we issued business improvement orders.”
Due to the recent orders, bitFlyer has apologized to its customers and states they will work to immediately comply with the regulators. The crypto exchange has decided to stop all new account registrations at the time, and are going to re-check their status of approval.
“If defects and deficiencies are confirmed within a customer’s registration information by any chance, it will be necessary to re-implement the person’s confirmation process. Therefore, in some cases, we ask visitors to re-present their identity confirmation documents, so we are sorry for any inconvenience,” Bitflyer emphasized.
The other five cryptocurrency exchanges listed received very similar orders. Tech Bureau was the first of the list of 16 to receive improvement orders, and after today, this would be its second.
An employee at Japan’s FSA told Bitcoin.com that at least one of the six cryptocurrency exchanges flagged was found to have some sort of involvement with an organized crime group. This employee did not specify which cryptocurrency exchange was at fault, but did reveal the crime group was Yakuza.
As the cryptocurrency industry continues to expand within Japan; the FSA will continue to tighten its belt to ensure the cryptocurrency exchanges comply with its in-place regulations.
Featured Image: Cryptoca