Japanese regulator, the financial services Agency (FSA), decided on the issuance of orders to improve business five licensed cryptomerias of the country. Among them was Quoine, Bitbank, BITPoint Japan, BtcBox and the largest in Japan, bitFlyer.
The results of the inspections, the regulator has concluded that there are deficiencies in the systems of internal control of operators of the exchanges, such as measures to prevent money laundering. The FSA intends to pass regulations companies by the end of this week.
Tough stance of the Agency in respect of five kryptomere was the result of rapid growth of deposits of their clients due to the continuing problems with reporting procedures, enabling the identification of suspicious transactions.
The FSA has tightened the requirements for the industry after the biggest hacking in January of unlicensed crypto currency exchange Coincheck. The regulator began a systematic check, the results of which were given prescriptions for improving the business. In the result of the Tokyo stock exchange GateWay and Mr. Exchange withdrew their application from the FSA for a license and announced the closure.
One of the measures to ensure compliance with the requirements of the Agency was a temporary suspension of activities of the exchanges. For example, FSHO was subjected to this sanction twice and eventually became the country’s first stock exchange, closed the regulator.