Japan’s financial regulator the Financial Services Agency (FSA) has sent business improvement orders to six major cryptocurrency exchanges.
According to an announcement made by the Financial Services Agency (FSA) on Friday, the regulator is ordering the following 6 cryptocurrency exchanges to enhance their internal-auditing and user-protection systems:
The FSA determined that bitFlyer, one of Japan’s largest and best-funded cryptocurrency exchanges had not established an effective management system to “ensure proper and reliable operation of the business, as well as countermeasures against money laundering and terrorist financing.”
To cater to FSA’s complaint and act on it, bitFlyer voluntarily announced it had stopped accepting new customers temporarily, stating it would be ‘re-examining the ID verification for certain existing customers”.
Furthermore, the exchange revealed a ten-point list on the mandated improvements demanded by the FSA. They include enforcing efficient management systems for user protection measures, system risks, an efficient interaction system with customers and more. Notably, the regulator has also demanded the exchange use a third-party to perform an ‘intensive review’ of the exchange and verify its relevant measures when listing new cryptocurrencies.
All six exchanges are required to turn in a written plan for their respective improvement orders before July 23. Until the complete list of business improvement requirements are met, the six exchanges will have to file additional reports detailing their monthly progress and implantation of new improvements on the 10th of each month.
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