Japanese authorities keep issuing business improvement orders against cryptocurrency firms

Maria Nikolova

The latest virtual currency business to be sanctioned is Everybody’s Bitcoin Inc.

Japan’s Kanto Local Finance Bureau has issued another business improvement order targeting a cryptocurrency firm. Earlier today, the regulator reported that such an order was issued against Everybody’s Bitcoin Inc.

The administrative sanctions are imposed following on an on-site inspection conducted by the Japanese Financial Services Agency (FSA). The check concerned the risk management system of the company. The inspection has detected a series of non-compliance issues, including problems with keeping statutory books, insufficient provision of information to clients, AML issues, lack of control over system risks, as well as problems with internal audits.

As per the business improvement order, the company has to ensure appropriate and reliable business operations via:

  • the establishment of a business management system;
  • the establishment of a management system to combat money laundering and terrorism financing;
  • the implementation of bookkeeping management system;
  • the establishment of a management system related to user protection measures;
  • the creation of a risk management system and an outsourcing management system.

The company will have to provide a written report to the regulator not later than May 14, 2018, informing it of its progress with regard to the above-mentioned measures.

In its official comment about the penalty, the company said it accepts the sanctions solemnly and sought to assure its customers that the actions of the regulators will not influence the services it offers.

The Japanese authorities have issued a raft of business improvement orders over the last months following the theft of cryptocurrency from Coincheck. GMO Coin, the virtual currency business of GMO Internet Inc. (TYO:9449), was among those companies targeted by such orders. GMO Coin was instructed to establish an effective system risk management system.

Coincheck was eventually acquired by online trading services provider Monex Group, Inc. (TYO:8698), with the JPY 3.6 billion deal completed on April 16, 2018.

Read this next

Digital Assets

10 crypto exchanges reportedly filed with Korean regulators

Only 10 cryptocurrency exchanges in South Korea have filed with the nation’s regulators to continue their businesses in the country. Out of this figure, the local industry media have identified the four biggest crypto exchanges – UPbit, Bithumb, Coinone and Korbit.

Industry News

With a New $36 Million Bounty, SEC’s Whistleblower Compensation Tops $1.1 Billion

The Securities and Exchange Commission on Friday said the total amount of payouts under its whistleblower program had topped $1.1 billion after the agency awarded $36 million to a tipster for flagging wrongdoing.

Retail FX

Bridget Messer Leaves IG Group after 16 Years

IG Group is parting ways with Bridget Messer, who held both CCO and executive director roles for the UK online trading specialist, according to a regulatory filing with Companies House.

Digital Assets

tZero Expands Cryptocurrency Offering With Five New Altcoins

Overstock.com’s blockchain subsidiary tZero today announced in a corporate statement that it added more popular cryptocurrencies/tokens to its proprietary platform. Effective October 4, tZero will support Bitcoin Cash (BCH), Stellar Lumen (XLM), Cardano (ADA), Compound (COMP), and Uniswap (UNI).

Digital Assets

China bans all crypto transactions ‘again’

The People’ Bank of China (PBOC), which is the central bank of China, has said that all crypto-related transactions in China are illegal and has once again reiterated its resolve to crack down on the crypto market.

Digital Assets

What has Ripple (XRP) been up to this week? A lot!

Ripple is far from stuck in the XRP lawsuit. The blockchain firm has announced partnerships in CBDCs and payments, its digital asset continues to be listed on high-profile exchanges, and the lawsuit is rippling through.

Industry News

SEC charges quant analyst for $8.5 million front-running scheme

The front-running scheme was allegedly concealed by executing the trades in the account of his wife, Maryna Arystava, who uses a different last name. This potentially allowed the fraud to last longer.

Industry News

Genesis appoints Billy Morris as CFO and opens Dublin office for low-code/no-code platform

Genesis helps firms to build software significantly faster than if they had started from scratch, with less code and at a lower cost, while simultaneously catering for a range of simple and complex financial use cases.

Industry News

Strike API Partners with Twitter to power instant payments with Bitcoin

Strike, one of the leading digital asset wallets built on the Bitcoin Lightning Network has announced the launch of its Strike API platform to serve various marketplaces and merchant businesses.

<