Japan's financial regulator has urged a cryptocurrency exchange to step up consumer protection and improve their system security measures after an on-site inspection revealed inadequate standards.
The Financial Services Agency (FSA) on Wednesday issued a business improvement order to Minnano Bitcoin, and urged the Tokyo-based company to submit an improvement plan by May 14.
FSA took the action after discovering that the exchange's internal control systems were lacking, including adequate measures to counter money laundering and terrorism financing.
The Agency ordered Minnano to make improvement in these areas: business management system, management system to prevent money laundering and terrorist financing, bookkeeping management system, user protection measures, and risk management.
Responding to the FSA's order, Minnano Bitcoin assured its customers and stakeholders to "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".
Minnano Bitcoin is a wholly owned subsidiary of the publicly listed Traders Holdings Co. Ltd., and trade three cryptocurrencies: bitcoin (BTC), ether (ETH), and bitcoin cash (BCH).
This is the latest in a series of business improvement orders FSA issued to the country's cryptocurrency exchanges in the wake of $530 million theft of digital money from Tokyo-based Coincheck.
by Joji Xavier
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