Japan watchdog orders enhancements at cryptocurrency exchanges

TOKYO (Reuters) – Japan’s monetary regulator stated on Friday it has ordered cryptocurrency exchanges together with bitFlyer, Inc., one of many nation’s largest, to make enhancements to lax measures on cash laundering.

FILE PHOTO: A person stands close to an commercial of a cryptocurrency trade in Tokyo, Japan March 30, 2018. Image taken March 30, 2018. REUTERS/Toru Hanai

The Monetary Providers Company (FSA) slapped six exchanges with enterprise enchancment orders after it discovered flaws of their anti-money laundering programs and controls throughout on-site inspections.

BitFlyer stated in an announcement it could voluntarily halt the creation of latest buyer accounts because it makes efforts to shore up its programs. Others focused by the FSA included well-known exchanges Quione and Bitbank Inc.

The FSA has cracked down on cryptocurrency exchanges because the $530 million theft of digital cash from Coincheck, one in all Japan’s largest, earlier this 12 months. The heist underscored worries over the safety of buying and selling cryptocurrencies.

Because the daring heist, the FSA has rejected purposes to run exchanges, and ordered others to stop or enhance enterprise over weaknesses in buyer safety.

As a result of chair the G20 in 2020, Japan hopes to take a world lead on the combating cash laundering at cryptocurrency exchanges, and is pushing for adoption of latest binding guidelines by 2019.

Reporting by Thomas Wilson; Enhancing by Jacqueline Wong & Shri Navaratnam

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