Japanese FSA planning to force improvements on major crypto exchanges

19 Jun, 2018
by Richard Allen
News
Japanese FSA planning to force improvements on major crypto exchanges

The Japanese financial watchdog is reportedly planning to force improvements on numerous licensed exchanges over perceived issues with internal systems, including anti-money laundering (AML) measures, CoinDesk writes.

According to a Tuesday report from Nikkei, the Financial Service Agency (FSA) concluded there were flaws in the exchange operators’ internal management systems, such as measures to prevent money laundering. The improvement orders are expected to be handed out by the end of this week.

The report suggests that at least five exchanges, namely bitFlyer, Quoine, Bitbank, BITPoint Japan and BtcBox are on the FSA’s list.

The report stated that, based on its recent inspections, the FSA found that some licenced exchnages do not have acceptable measures in place to pick up suspicious transactions. The agency is also concerned that the firms haven’t recruited enough staff to cope with the growing volume of transactions.

The agency issued a number of business improvement orders back in March to a number of registered but lesser known exchanges, such as GMO Coin and Tech Bureau, as part of its analysis of crypto trading platforms following the $530 million Coincheck hack in January.

Additionally, the FSA issued its first licence rejection to crypto exchange FSHO after having issued two suspension orders to the company after its asserted failure to properly implement security and AML improvements.

Clearly Japan's financial watchdog is maintaining its no-nonsense stance on cryptocurrency exchanges.

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