Red Card To Two Cryptocurrency Exchange Markets In Japan

Marcin IwańskiWritten by | cryptocurrency, news, regulations

Red Card To Two Cryptocurrency Exchange Markets In Japan

Two Japan-based have been suspended due to insufficient ‘know your customer (KYC) procedures’.

Due to Japan Financial Services Agency (FSA), BitStation and FSHO cryptocurrency exchange markets have been suspended (effective immediately) and will last until June 5 and June 7.

Also, due to FSA probe, five other cryptocurrencies have been handed business improvement orders. We need to highlight that primary reason for the increased regulators’ activity is the hacking scandal when $500 worth NEM were stolen. The probe targeted at 16 exchanges in Japan.

The failure to place anti-money laundering efforts is not in compliance with the Act on Prevention of Transfer of Criminal Proceeds, the agency said.

In case of BitStation, the cryptocurrency exchange market has been punished for violating Japan’s’ laws by using customers deposits to pay for the company expenses.

In addition, FSHO and BitStam have made insufficient improvements to their users safety in case of cyber threats, the FSA said.

The agency suspension order was sent to FSHO, at the same time, another exchange, BitStation also received an order to stop their operations, while five other cryptocurrency exchange platforms have to report back to the FSA  improvement business and safety measures.

Also, Japan is forming a separate agency to fight cryptocurrency scammers and thieves. The government wants to prevent situations such as hacking in the future.

Due to all affairs around cryptocurrencies in Japan, the government tries to regulate them and work with the community to make that crypto-zone safe.

 

Tell us what do you think, here in the comment section below or via Facebook.

 

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Last modified: April 10, 2018

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