Japan’s Crypto Exchanges Currently In a Tight Spot In Light of New Regulations
The FSA and Japan’s government are currently pushing for the adoption of new rules for the cryptocurrency industry in light of the recent money laundering and hacking events. This is yet another aftereffect of the Coincheck hack that took place at the start of the year when $350 million’s worth of cryptocurrency was lost.
The country’s Financial Service Agency filed an order to improve anti-money-laundering measures and has specifically targeted six exchanges, as reported by Japan Times. The decisions were taken following a series of on-site inspections by the investigators who discovered various irregularities.
The exchanges in question, including Tech Bureau Corp, Quoine, Bitbank, and bitFlyer – the largest crypto exchange in Japan – are set to suspend the creation of new accounts while the suggested anti-money-laundering improvements are being implemented.
Efforts towards improving the deficiencies
bitFlyer has since then published a notice on their websites letting users know that the company is more than willing to understand the issues at hand and to patch the loopholes which could be exploited by scammers.
“Our management and all employees are united in our understanding of how serious these issues are, as well as how serious we are in responding to them going forward,” the company declared on their website.
“In order to maximize our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition,” bitFlyer further said.
Future regulations set to be even stricter
The punitive actions are expected to tighten up as the FSA is committed to making the industry healthier as well ensuring that Japan, the birthplace of the legendary Bitcoin, remains one of the most crypto-friendly countries in the world.
The changes haven’t gone by with some negative effects as both the Bitcoin and Ethereum markets continue to collapse. As of this writing, Bitcoin is selling below $6500 and Ethereum below $500.