The Financial Services Agency issued a business improvement order to cryptocurrency exchange operator bitFlyer, Inc. on Friday under the revised Payment Services Law on the grounds that bitFlyer's client management was problematic.
In response, the virtual currency exchange likely will stop accepting new clients for the time being. The company plans to resume accepting new clients after it has come up with a way to verify a client's identity to prevent money laundering and has added safety measures to its computer systems.
The company is a leading cyptocurrency exchange operator in Japan and plays a leading role in a newly established self-regulatory industry association.
The FSA has strengthened its watch over cryptocurrency exchange operators to protect customers.
So far, the agency has prioritized inspections of "quasi-operators" that have been given special treatment to conduct business without registration at the agency. Of 16 such companies, the FSA has issued operation suspension or business improvement orders to 10 operators.
Since the agency is nearing the end of dealing with quasi-operators, the FSA has turned its attention to checking whether there are problems with registered operators, including bitFlyer.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
