Japan’s Financial Services Agency (FSA) has issued business improvement orders to multiple domestic crypto exchanges, Cointelegraph Japan today, June 1st.
One of FSA’ main concerns is the exchanges’ compliance with (AML) requirements. The agency’s inspections revealed that several of the crypto exchanges under its aegis are failing to apply sufficient (KYC) checks to confirm the identity of their users and prevent ‘bad actors’ from trading.
The regulator has also raised concerns about cases where it claims that customers’ assets are not being adequately separated from those of the exchange.
The regulator’s new orders have been issued to twelve crypto exchanges in total, two of which are officially licensed exchanges and ten of which are ‘quasi-operators,’ meaning that their application for an FSA operating license is still pending.
According to Cointelegraph Japan, the FSA is expected to publish a report summarizing the results of its inspections later this month, and will also provide further guidance on required customer protection measures.
Two high-profile scandals involving Japanese crypto exchanges – January’s unprecedented and the of Tokyo-based Mt. Gox – have led to intensified interventions from the country’s financial watchdog.
, Japan’s Payment Services Act has required all crypto exchanges to be registered under an FSA license, with the licenses being approved in September. The regulator further stipulations this year, placing an emphasis on AML and KYC compliance.
A for Japanese exchanges was convened in April to provide assistance to domestic operators, some of whom have rather than stave from the FSA. Nonetheless, the country continues to show crypto adoption levels.
Last month, a leading Japanese fintech company it would be launching a crypto asset exchange within the year.
Published at Fri, 01 Jun 2018 14:42:12 +0000
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