In the wake of the Coincheck breach earlier this year, the Japanese Financial Services Agency (FSA) has been cracking down on that country’s cryptocurrency exchanges. Now a new wrinkle has emerged over concerns that the country’s licensed crypto exchanges do not have sufficient internal processes in place, including anti-money laundering (AML) procedures.

According to a recent report from Nikkei, the FSA will issue business improvement orders to more than five crypto exchanges, including bitFlyer and Quoine.

The move by the FSA comes after a group of self-regulating Japanese crypto exchanges proposed to strengthen their AML procedures by prohibiting platforms that list anonymous cryptocurrencies such as monero and dash.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.