By James Sweet III | Japan
The Japanese Financial Services Agency, shortened to FSA, is a government agency that is responsible for overseeing financial organizations like banks, exchanges, and insurance corporations. Just recently, they issued an order to a cryptocurrency exchange, demanding that they improve their operations to meet the FSA’s standards.
Minnano Bitcoin, a government-approved exchange for cryptocurrencies in Japan, was the exchange that received the “administrative punishment” handed down by the government. The FSA did an inspection of the exchange’s operations, and discovered it was “not performing appropriate verification at the internal audit in addition to the inadequate management and management system.”
The demands state that Minnano Bitcoin must do the following:
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.
May 14 is the deadline the FSA has created for the exchange to improve its internal organization, as well as write a report on its improvements.
Minnano Bitcoin is a “deemed dealer” of cryptocurrencies and other assets, allowing them to operate. Exchanges can become licensed, leading to less intrusion and investigation in the long run. Only two licensed exchanges have been ordered to improve their businesses in some way, while multiple other deemed dealers have been ordered to improve their operations.