Japan probes two cryptocurrency exchanges after management changes -sources
23/04/2019 10:05
TOKYO, April 23 (Reuters) - Japan's financial regulator
raided two cryptocurrency exchanges last week to investigate
their internal oversight, including customer protection and
anti-money laundering measures, two sources familiar with the
matter said on Tuesday.
The Financial Services Agency (FSA) is pushing to ensure the
security of virtual currencies as Japan aims to leverage the
fintech industry to stimulate economic growth.
The FSA conducted inspections at Huobi Japan Inc and Fisco
Cryptocurrency Exchange Inc, both of which recently underwent
major changes to management structures, the sources said,
declining to be identified because they are not authorised to
speak to the media.
The FSA investigations were designed to ensure appropriate
measures have been implemented for customer protection and legal
compliance after the management changes, the sources said.
A Huobi representative declined to comment on the FSA
inspections or communications with the regulator. Fisco did not
respond to multiple requests for comment.
Huobi Japan was established last year after Singapore-based
Huobi Group acquired the government-registered BitTrade
exchange.
Fisco Cryptocurrency Exchange, owned by JASDAQ-listed
financial information provider Fisco Ltd 3807.T , took over
another government-registered exchange, Zaif, from another
company, Tech Bureau, after Zaif suffered a $60 million
cryptocurrency heist.
Japan in 2017 became the first country to regulate
cryptocurrency exchanges at a national level, hoping to
encourage technological innovation while ensuring consumer
protection. Exchanges have to register with FSA and required
reporting and other responsibilities.
(Reporting by Takahiko Wada; Writing by Makiko Yamazaki;
Editing by David Dolan & Kim Coghill)
((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;))