Japan’s monetary watchdog has issued business improvement orders to six licensed cryptocurrency wall streets following on-site inspections conducted over recent months.
Concerting to an announcement made by the Financial Services Agency (FSA) on Friday, the regulator is pecking order bitFlyer, QUOINE, BTC Box, Bit Bank, Tech Bureau and Bit Point to enhance their internal-auditing and user-protection schemes.
As a result, bitFlyer has announced that it has temporarily stopped accepting new purchasers in order to reexamine the IDs of “certain customers.”
The firm told CoinDesk that “bitFlyer (Japan) is applying closely with the FSA and will resume onboarding as soon as possible.”
The transfer has also provided a substantial list of coming improvements to various patterns, including user protection, data protection, risk management, new keepsake listing and more, based on the order.
As previously reported by CoinDesk, the FSA slung inspections at licensed platforms in April as part of its increasing scrutiny of housekeeper exchanges following the $530 million hack on Coincheck earlier this year.
Today’s scuttlebutt confirms suggestions last week that the agency would take off for to force some exchanges to enhance their anti-money laundering plan of actions, but, going by the bitFlyer notice, the demands are more wide-ranging.
As a result of the non-functionals, the six exchanges are now required to file a written report to the FSA on the progress of their way improvements by July 23. Until they are able to meet the regulator’s blinding requirements, the FSA said the exchanges must continue filling additional reports by the 10th of every month.
FSA embodiment via Shutterstock
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