FSA Orders To Censured Japanese Crypto Exchanges Revealed

Japan Security

Details have emerged about new requirements that Japan’s financial regulator, the Financial Services Agency (FSA), asked crypto exchanges it sent business improvement orders last week.

Six major crypto exchanges in the country, including BitFlyer, Japan’s largest crypto exchange, received a list of requirements to follow. BitFlyer has since stopped accepting applications for new user accounts.

Local media outlet Zia reports that the FSA has ordered BitFlyer, QUOINE, Bitbank, BTC Box, Bit Point Japan and Tech Bureau to :

  1. Establish a system to comply with anti-money laundering (AML) and terrorism financing-related matters.
  2. Improve customer protection.
  3. Begin creating a risk management network to deal with new tokens and cryptocurrencies.

The FSA also asked some crypto exchanges to create effective management systems and to begin improving the way the exchange handles customer assets.

Bitflyer has recently removed promotional images featuring actress Riko Narumi from its website. Narumi was the face of BitFlyer during its recent marketing campaign. The firm has instead posted a large banner on its website saying:

“All of our employees will solemnly accept your suggestions and we will respond in earnest in due course. We are currently suspending new customers’ account creation on a voluntary basis. We are doing so in order to do our utmost to build a proper service management system and improve our offerings.”

BitFlyer recently took to Twitter to deny that it suffered a hack last May, a claim it repeated early this month. On June 11, the firm refuted claims on social media, regarding an alleged “[FSA] business suspension order to be issued [on June 12],” and warned customers about fake news.

All six of the crypto exchanges that received business improvement orders are part of the first wave of exchanges awarded operating licenses by the FSA last year. Japanese analysts think this is evidence that the FSA is getting stricter with its policing of exchanges in the wake of the hack Coincheck suffered early this year.

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