A failure to comply with anti-money laundering (AML) guidelines will see at least five cryptocurrency exchange operators receive ‘business improvement orders’ from Japan’s Financial Services Agency (FSA), a Nikkei report on Tuesday has revealed.
The five exchanges on the FSA’s whipping list are notably registered with the regulator to operate a domestic trading platform in the country. They include bitFlyer, Quoine, Bitbank, BitPoint Japan and BtcBox, the report added.
The FSA discovered ‘flaws’ in the exchanges’ internal management systems at a time when their holdings of customer assets increase exponentially. Those flaws reportedly include reporting procedures to flag suspicious transactions that could reveal instances of money laundering, according to the FSA investigation. Those business improvement orders are expected to be handed down by the regulator by the end of the week.
The FSA has notably ramped up its scrutiny into Japan’s domestic crypto exchange industry following the half-a-billion-dollar hack of unregistered Tokyo-based exchange operator Coincheck in January this year, now seen as the biggest crypto theft in history.
The regulator began ‘spot checks’ across a number of exchanges, both registered and unregistered, in February…