Japan Virtual Currency Exchange Association (JVCEA) published its very first guidelines regarding crypto industry’s best practice, only a week after its two vice presidents Yuzo Kano and Noriyuki Hirosue announced that they will be resigning from their posts, Cointelegraph Japan reports June 25.
Kano and Hiroyuki are CEOs of bitFlyer and Bitbank respectively, both of which received business improvement orders from Japan’s Financial Services Agency (FSA) June 22.
FSA sent business improvement orders to six different cryptocurrency exchanges that are operating in the country, including bitFlyer Co., Ltd. and Bit Bank Corporation, wherein Kano and Hirosue are CEOs.
Order entailed that the mentioned firms overhaul their risk management systems, especially their measures against anti-money laundering (AML) and know-your-customer (KYC) requirements.
Along with bitFlyer and Bitbank, the said financial regulating body issued the same improvement orders to other crypto exchange platforms like Quoine, BTC Box, Tech Bureau, and Bit Point.
For bitFlyer, the FSA stipulated a raft of new measures, including “an effective management system has not been established to ensure proper and reliable operation of the business, as well as countermeasures against money laundering and terrorist financing.”
BitFlyer was outright apologetic to the public, especially to the consumers, posting that they
apologize to all concerned and the customers who have caused a great deal of worry and inconvenience due to this business improvement order.
It so far remains unknown who will replace Kano and Hiroyuki, and whether their departure will affect the body’s future plans.
Finally, the notice said:
We will continue to do our utmost to protect the interest of users and to promote the sound development of the virtual currency exchange industry, including the early establishment of voluntary regulation rules.