Six government-approved cryptocurrency exchanges in Japan have submitted their business improvement plans to the country’s top financial regulator. While improving their internal systems, most have also engaged in different areas of business expansion.
Six Business Improvement Plans Submitted
Six of Japan’s 16 government-approved cryptocurrency exchanges have submitted their business improvement plans to the country’s top financial regulator, the Financial Services Agency (FSA). On June 22, the FSA issued business improvement orders to Bitflyer, Bitpoint Japan, Bitbank, Btc Box, Quoine and Tech Bureau.
Complying with the orders, each of the six companies confirmed that they have submitted a written business improvement plan to the agency on Monday, July 23.
Bitflyer was ordered to improve in ten areas, Btc Box nine, Bitbank eight, and Quoine seven. Both Bitpoint and Tech Bureau were ordered to improve in six areas. The June 22 order was the second for Tech Bureau, the operator of the Zaif exchange.
The only company to receive an order for a “drastic review of [its] management system” was Bitflyer. The exchange, along with Quoine and Btc Box, also received an order to construct “a management system related to the exclusion of antisocial forces.”
Other improvement items the FSA ordered include “Building a legal compliance system,” “Establish a risk management system for money laundering and terrorist financing,” “Construction of a separation control system for user property,” “Establishment of a control system related to user protection measures,” and “Construction of the risk management system in accordance with the new handling or the like of the virtual currency.”
New Trading and Payment Tools
Since receiving a business improvement order, Bitpoint has launched a couple of new services. A trading tool called Bitpoint Advance was launched on June 29. It is “designed to quickly deal with price information such as charts and board information…on one screen, without changing the screen,” the exchange described. The tool supports “both in-kind trading and leveraged transactions.”
Earlier this month, Bitpoint upgraded its crypto payment system for merchants called Bitpointpay, which now supports BCH, BTC, and ETH. The company detailed:
We have upgraded the version to correspond to bitcoin cash (BCH) with the aim of expanding the means of settlement for users … As a result of this upgrade, customers (payers) can choose to pay franchisees from the three types of virtual currencies.
After apologizing to its customers again on Monday, Bitbank wrote that they have “fundamentally reviewed the internal control system and management system.” The measures, according to the company, were made “in order to ensure proper and reliable operation of the business towards customers’ recovery of trust.”
To avoid future problems, Bitbank also indicated that they will “continue to review the management strategy and others.”
Last week, the company launched a career site to “strengthen its recruitment.” The site currently lists a number of vacancies to be filled such as various positions in engineering, design, marketing, PR, HR, internal audit and compliance. The company says:
We are currently growing rapidly, but we are looking for someone who can work together to grow more.
Zaif announced last week that its existing iOS and Android smartphone applications will be terminated on October 15. “Support will [also] be terminated on Tuesday, October 16, 2018,” the exchange wrote.
The company emphasized that deposits, withdrawals, and trading on the Zaif exchange will be unaffected, clarifying that “Currently we are developing dedicated new applications. We will make every effort to provide you with better service with a new official application.”
New Account Signups Still Suspended
Meanwhile, Japan’s largest crypto exchange by trading volume, Bitflyer, issued a notice Monday stating that it “strictly observes the relevant laws and regulations and further strengthens the management system throughout the company.”
“We will make every effort to prevent recurrence and restore customer’s trust,” the company emphasized.
The exchange stopped accepting new customers immediately after receiving the improvement order on June 22. At the time of this writing, its website still shows:
We are currently pausing the account creation by new customers voluntarily in order to do our utmost to build a proper service management system and to improve our suggestions.
What do you think of how the Japanese crypto industry is evolving? Let us know in the comments section below.
Images courtesy of Shutterstock, Nikkei, Bitflyer, Bitbank, Bitpoint, Btc Box, and Zaif.