The Financial Services Agency of Japan (FSA) will send recommendations on improving the business of the country's five crypto-exchanges.
Why it is important
- After hacking Coincheck in January, the FSA began to consider tightening the regulation on the currency trade. Some crypto exchanges are leaving the Japanese market because of the laws that are in force now. According to some experts, the state is preparing to adopt new restrictions in the crypto sphere.
FSA conducted inspections and explained that BitFlyer, Quoine, Bitbank, BITPoint Japan and BtcBox exchanges do not meet internal management requirements. In particular, regulators have not found effective protection against money laundering on these platforms. Quoine, Bitbank, BitFlyer and BtcBox in the world ranking of the largest crypto exchanges taking 18th, 19th, 27th, and 50th place respectively.
BITPoint Japan noted that instructions from the FSA have not yet arrived. The other four exchanges refused to comment on the situation. The release of recommendations is expected within a week.
The inspection of Japanese crypto exchanges began after the Coincheck platform lost $532 million as a result of a hacker attack in January. FSA carried out mass checks, the operation of several crypto exchanges was suspended.
Since April 2017, all of Japan's cryptocurrency exchanges need to register with the FSA.
In June 2018, the regulator for the first time refused to obtain such a license. The Financial Services Agency has rejected the registration of the cryptocurrency exchange FSHO. An inspection of the company has revealed that the Yokohama-based firm does not possess the necessary systems required to manage its business.
By Ekaterina Ulyanova