After an on-site inspection showcased unsatisfying standards, the Japanese Financial regulator tells yet another cryptocurrency exchange to improve their standards. Next month, the exchange must abide by and issue a written report to the Authorities.
The FSA has issued another “administrative punishment order” to a cryptocurrency
An administrative punishment order has been issued to a cryptocurrency exchange by the Japanese Financial Services Agency (FSA). A business improvement order was issued to a Tokyo-based Minnano Bitcoin from the agency on Wednesday. According to the exchange’s website, the English name of the site is called “Everybody’s Bitcoin Inc.”
Subsequent to the exchange submitting its system risk management report to the agency proceeds an order for on-site inspection by the FSA. While its application is being reviewed by the agency, the exchange is considered a “deemed dealer” as it continues to operate under these conditions.
The FSA located discrepancies with the exchange’s “compliance with law and regulations and proper operation of the business”, based on the report and the inspection implemented by the FSA on the exchange. For instances, the agency confirmed that the exchange was “not performing appropriate verification at the internal audit in addition to the inadequate management and management system.”
Additionally, the agency explained that the prohibition of money laundering, funding terrorist groups, give adequate information to end users, “preparing and preserving statutory books, and adequate measures over outsourcers and system risks are among the problems of the exchange.
Bitcoin (BTC), ether (ETH) and bitcoin cash (BCH) are among the three digital currency enlisted on Minnano Bitcoin’s website.
Publicly listed Traders Holdings Co. Ltd (JASDAQ:8704) is the Parent company (with total ownership of the exchange) of Minnano Bitcoin and they are involved in Japan’s securities and foreign exchange trade. The exchange made a deal with Debit Inc, in connection with a fund settlement service with the use of cryptocurrency via a business alliance agreement with Debit Inc.
What the FSA’s Order say….
The FSA detailed that the subsequent controls were done to facilitate an adequate and “reliable” business activity, as reported by NewsBitcoin.com. The exchange was to improve its business activities through five precise methods, the agency ordered, which are “Building a business management system; Establishment of a management system for money laundering and terrorist financing; Construction of bookkeeping management system; Establishment of management system related to user protection measures; Construction of system risk management system and outsourcing management system.”
By May 14, the exchange should accomplish these business improvements task and issue a written report to the FSA, as indicated by Newsbitcoin.com.
In a statement issued by Minnano Bitcoin apologizing to its clients and other players, in response to the order given by the FSA states “We take this administrative punishment solemnly and sincerely, [and will] establish a posture for the proper and reliable execution of the virtual currency exchange industry, regulate the virtual currency exchange trader and recover the customer’s trust with full power.”