Japan’s Crypto Exchange bitFlyer Temporarily Ceases Registration
June 25, 2018
Japan’s largest crypto exchange bitFlyer has temporarily stopped registering users due to new restrictions introduced by the country’s government. In addition, all registered platform users will be offered to get identified in KYC-procedure again.
The cause for such decisions were downsides found by the Japan’s Financial Services Agency (FSA). In particular, the regulator considered security measures taken by bitFlyer insufficiently effective against money laundering and terrorism financing. Furthermore, the FSA have detected problems in the platform’s internal management.
As a result bitFlyer spokesmen have published a post for its users with apologizes. The message also said, the company takes all effort to maintain the platform functioning in accordance with guidelines to avoid similar incidents later.
To recover bitFlyer will have to provide an improvement plan for the regulator by July 23, the exchange will be obliged to submit every month a written report to the FSA on the progress.
bitFlyer is one of the 11 crypto exchanges that have been approved to keep functioning by the FSA in September last year. Note that 6 exchanges have already adopted the recommendations from the regulator while rest 5 ones including bitFlyer, Bitbank, BITPoint Japan and BtcBox received advice of improving business strategy two weeks ago.
Currently bitFlyer is the world’s 23rd largest crypto exchange. According to Coinmarketcap data, the platform processes orders to the tune of $72 million every day. At the beginning of the year the exchange has set itself working in Europe.
Remember that Japan’s government has toughened legislation for crypto exchanges after hacking of Coincheck when criminals hijacked up to $530 million in NEM tokens.