Japan’s FSA To Issue Business Improvement Notices To 5 Crypto Exchanges, Report Says

June 19, 2018 6:26 pm Published by

Business improvement notices will be issued by Japan’s Financial Services Agency (FSA) to five registered cryptocurrency exchanges by the end of this week, CoinTelegraph Japan reported Tuesday.

The notices were issued because the five – BitFlyer, Quoine, Bitbank, BITPoint Japan and BtcBox –  do not currently have proper internal management systems, including measures to prevent money laundering, the report said.

Currently, BitFlyer, Quoine and Bitbank are some of the largest crypto exchanges both in the country and in the world, CoinTelegraph reported, sitting at 27th, 18th and 20th places by trade volume, according to Coinmarketcap data.

Concerning the notices, BITPoint Japan told Cointelegraph Japan there is “no such fact at the present time,” while BitFlyer said they are “not in a position to comment,” the report said. Bitbank and Quoine said they could not answer, and BtcBox did not respond to a request for comment.

After January’s $532 million hack of NEM from Japanese crypto exchange Coincheck, the report said, the FSA began inspections of crypto exchanges, issuing multiple business improvement notices and halting the operations of several exchanges as well.

Since April 2017, all crypto exchanges in Japan must be registered with an FSA license to operate, CoinTelegraph reports. At the beginning of June, the FSA rejected a crypto exchange license application for the first time, citing concerns that the exchange — whose services had already been suspended twice this spring — didn’t provide adequate customer identity verification in the case of suspicious transactions.

WN.com, Jack Durschlag

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