Japanese Financial Regulator, the Financial Services Agency (FSA) have reportedly, conducted raids at two Cryptocurrency Exchange offices in Japan. Reportedly, the two exchanges “underwent major changes to management structures” which were brought to an investigation by the FSA.
Huobi Japan Inc., a Singapore based Exchange from China and Fisco cryptocurrency Inc., Minato-ku-based Exchange were the two firms put under surveillance.
According to a press release from Reuters,
“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.”
Furthermore, the sources remained anonymous as they are not authorized to speak to the media. Huobi Japan Inc. was established under its parent company based out of Singapore after it acquired the Government registered, BitTrade Exchange.
Fisco is a financial services provider in Japan that deals in equity, foreign exchange, bonds, and commodities markets. It acquired Government registered Zaif Exchange to enter into cryptocurrencies in 2016.
The Japanese Regulators have so far brought a total of 123 companies under its surveillance that deals in cryptocurrencies; Japan is one of the first developed countries to regulate Cryptocurrency Exchanges. The Exchanges are required to register with the Government and comply with the rules of customer protection and legal formalities laid down by the Government.
Hence, the raids carried out by the FSA were to ensure that the regulatory compliances have been followed at the two Exchanges after management changes. Furthermore, Japanese banks are the forerunners of the institutions that plan to integrate Blockchain and cryptocurrency in the current financial system.
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