Japanese regulator warns crypto platforms

Japan’s regulator is to warn five domestic crypto exchanges they must improve their internal systems.

Japan’s Financial Services Agency (FSA) will be using improvement notices to the platforms by the end of this week, according to a report from Cointelegraph.

Internal systems at crypto exchanges Quoine, BitFlyer, BITPoint Japan, Bitbank, and BtcBox are understood to fall short of the FSA’s standards. This includes steps to crack down on money laundering.

Tighter grip

The regulator has been tightening its grip over domestic crypto platforms in the wake of January’s infamous cyberattack on Japanese crypto exchange Coincheck. Over $500m in NEM was stolen.

Since then, the FSA has issued various exchanges with business improvement notices and even ordered a stop to the operations of various platforms.

Trading NEM digital coins

Control

Japanese crypto exchanges were first put under the FSA’s control in April last year, requiring them to register with the regulator and obtain a license to operate.

It is placing an emphasis on measures to detect suspicious transactions and tackle money laundering, with the onus being placed on platforms to properly vet customer identity.