Huobi Japan and Fisco, two cryptocurrency exchanges were said to have been investigated by the country’s financial watchdog in April. Japanese watchdog closely investigates crypto-exchanges Fisco and Huobi.
Citing “two sources familiar with the matter”, Reuters reported that the two exchanges were visited by the Financial Services Agency (FSA) to assess their customer protection and anti-money laundering (AML) provisions.
According to the sources, the Japanese exchanges had seen big changes at the management level. The FSA wanted to ensure adequate compliance measures were in place under the new regimes, which is why the investigation was conducted.
Huobi Group expanded its trading services to Japan last September, through the acquisition of licensed cryptocurrency exchange BitTrade. Japanese watchdog closely investigates crypto-exchanges Fisco and Huobi.
Previously managed by Tech Bureau, the Zaif exchange was acquired by Fisco.. Tech Bureau sold the business to Fisco for $44.7 million, after incurring a major hack last September.
Zaif lost approximately $62.5 million in bitcoin (BTC), bitcoin cash (BCH) and monacoin (MONA) in the hack.
Since the breach, while trading, depositing and withdrawing MONA had been on hold, and registration of new members had been suspended. Full services resumed at the end of April, when the official transfer of the exchange to Fisco took place.
Japan passed a law in April 2017 that brought cryptocurrency exchanges under anti-money laundering (AML)/know-your-customer (KYC) rules and mandated platforms to be licensed. Japan is one of the few countries that recognized bitcoin as a legal method of payment.