News Regulation

Japanese FSA slaps Minnano with improvement order

On Wednesday, April 25 another administrative punishment order was issued by the FSA to Minnano Bitcoin, the Tokyo-based cryptocurrency exchange.

The order was submitted after the FSA conducted an on-site inspection of the exchange after the submission of a system risk management report. Minnano is currently legally operating as a «deemed dealer» of cryptocurrencies while its application for licensure under the FSA is being reviewed.

The FSA took issue with Minnano’s «compliance with laws and regulations and proper operation of the business».

«The exchange was not performing appropriate verification at the internal audit in addition to the inadequate management and management system.It also has the problem of preventing money laundering and terrorist financing, preparing and preserving statutory books, providing appropriate information to users, and effective control over system risks and outsourcers», – the FSA said.

The order listed five specific ways that the exchange needed to improve itself:

  • building a business management system;
  • establishment of a management system for money laundering and terrorist financing;
  • construction of bookkeeping management system;
  • establishment of management system related to user protection measures;
  • construction of system risk management system and outsourcing management system.

The improvements must be made by May 14th.

Following the order, Minnano publicly stated that it take this administrative punishment «solemnly and sincerely» and will establish a posture for the proper and reliable execution of the virtual currency exchange industry, regulate the virtual currency exchange trader and recover the customer’s trust with full power.