Japan's exchange BitFlyer has suspended registration of new users

Japan’s exchange BitFlyer has suspended registration of new users

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The largest cryptocurrency exchange  of Japan, bitFlyer, previously caught by the regulator in connection with inadequate measures to combat money laundering, will not accept new users until it brings its practices in line with the requirements of the Financial Services Agency of the country. This is stated in the document on the website of the exchange.

bitFlyer notes that on June 22 it received an order to improve the work of other exchanges of cryptocurrencies, which only concerns its Japanese division and will not affect operations in the US and Europe. The exchange said that the regulator requires mandatory verification of all users, and some customers may need to resend their documents. To optimize this process, bitFlyer temporarily stops accepting new users.

“As a company, we are firmly convinced that regulation is fundamental to the long-term development of bitcoin and the virtual currency industry,” the stock exchange writes.

The company does not announce when it intends to resume user registration, but specifies that it must report to the Financial Services Agency about the measures taken before July 23.

On Tuesday, it became known that large Japanese exchanges will receive a cryptocurrency order to improve measures to combat money laundering before the end of the week. In addition to bitFlyer, the regulator was displeased with Quoine, Bitbank, BitPoint Japan and BtcBox. All of them are registered exchanges of cryptocurrencies in Japan. The Financial Services Agency conducted an investigation and found “weaknesses” in the internal management systems of these exchanges, including violations of the procedures for identifying suspicious transactions that could be used for money laundering.

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