Japan-based Financial Services Agency (FSA) is about to take strict actions against a few registered cryptocurrency exchange operators. The regulators are said to receive disciplinary actions for not setting up satisfactory internal control of systems. It may include world’s leader Bitcoin Exchange Bitflyer in the list.
According to Japan Times, a revised payment service law was implemented in April 2017 for cryptocurrency exchange in the country. However, the operators haven’t taken suggestive measures until now which is going to have a massive impact on their operations. Unexpectedly, this isn’t the first time the agency has taken punitive measures to make the crypto industry more transparent and secured for customers.
Tokyo based FSA is a government agency that supervise insurance, baking and exchanges. The officials directly report of Minister of State for Financial Services.
FSA’s Punitive Actions In Past
Financial Services Agency has approached the cryptocurrency exchange third time in a row this year itself. The steps indicate that the exchanges are monitored closely in respect of transactions. Experts suggest that this action has been taken on the basis of the on-the-spot inspections that were conducted in February this year. The administration found theft of customer’s assets from Tokyo-based Coincheck Inc which was under checks.
FSA has even ordered Business Improvement to regulators like Tokyo-based GMO Coin Inc. and Osaka-based Tech Bureau Corp. Also, considering the names of the past it seems that the agency has been very strict to impose rules and their executions. However, despite so many attempts taken by FSA regulators continue to go on with their regular operations.
Cryptocurrency exchange in Japan has taken a big leap in terms of fiscal last year. In terms of figure, it made around ¥69 trillion in 2017 which was about 20 times higher than the previous year’s amount. However, there were complaints of theft, fraud, money laundering, verifying customer id’s and too much load on their systems.
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