Friday, 21 June 2019

Japanese crypto exchange Fisco receives business improvement order by regulator @TheBlock__ #Exchanges #Regulation #Fisco #FSA #Japan #JFSA #Zaif

Japanese cryptocurrency exchange Fisco has received a business improvement order by the country’s financial regulator.

The Financial Services Agency (FSA) has announced...

Japanese cryptocurrency exchange Fisco has received a business improvement order by the country’s financial regulator.

The Financial Services Agency (FSA) has announced  the news Friday, saying that Fisco management "did not recognize the importance of legal compliance", which led to "a number of legal violations."

There have also been issues with the exchange's business management system, the FSA said, adding that "there were also problems" in the risk management system for money laundering and terrorism financing.

Fisco was reportedly “raided” by the FSA back in April, to ensure "appropriate measures have been implemented for customer protection and legal compliance after the management changes.”

The regulator has now ordered Fisco to set up a management system including a system in which "the functions of the internal management department and the audit department can be fully realized" as well as put in place legal compliance. 

Fisco has also been asked to establish a risk management system, outsourcing management system, book document management system and audit system, according to the announcement.

Fisco is also the owner of the Zaif crypto exchange, which suffered a massive hack of around $62.5 million and lost bitcoin, bitcoin cash and monacoin in the breach. Zaif only recently resumed full services under the new owner Fisco. It was earlier operated by Tech Bureau, which sold the business to Fisco for $44.7 million last year. 

The FSA was also reportedly investigating cryptocurrency exchange Huobi Japan in April.



source https://www.tokentalk.co/The Block/japanese-crypto-exchange-fisco-receives-business-improvement-order-by-regulator-5d0c9c90aa70d26d50f0b5db

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