Japanese regulator sent a warning to the six largest cryptocurrency exchanges of the country

Japanese regulator sent a warning to the six largest cryptocurrency exchanges of the country

Financial regulator of Japan – financial services Agency (FSA) sent the warning, the six largest stock exchanges of the country in which decided immediately to make certain improvements in its operations.

According to a press release published on its website, the FSA is required to conduct a full review of the risk management system is subject to the requirements of anti-money laundering (AML) practices and know-your-customer (KYC). Orders were sent to the following exchanges: bitFlyer, Quoine, BTC Box, Bit Bank, Tech Bureau and Bit Point.

bitFlyer, currently is on the 23th place in the world by trading volume. Representatives of the exchange said they have already begun to implement the recommendations of the FSA, in particular, has closed registration for new users and also began a review of existing data users.

The FSA concluded that in the case of bitFlyer “you have not created an effective management system to ensure reliable operation of the business, as well as the adoption of countermeasures against money laundering and financing of terrorism”.

Representatives of the exchange said they will fulfill all 11 items listed in a and provide a report on the work done by 23 July. Also representatives of the exchange said that:

We apologize to all stakeholders and our customers in connection with this order.

Recall that the FSA has sharply tightened their requirements to cryptocurrency exchanges after the incident with Coincheck, when it was stolen about 530 million dollars in the cryptocurrency.

As a result of further verification about 7 cryptocurrency exchanges have closed, and some others have suspended their work.

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