The Japanese financial authorities required the Financial Action Task Force (FATF) to realize unified crypto regulations to oversee crypto exchanges internationally with the same standard and policies on June 16. This measure was directed on preventing the applying the anonymous cryptocurrencies.
It’s nearly impossible for Japan to handle the problem alone. Even if trade is restricted to only domestic transfers or monitoring is enhanced, it’s still not enough to counter money laundering. It would be best if all the group of 20 industrial and emerging nations and regions (G20) would take the same steps toward prevention.
(Japanese Financial Services Agency)
On June 19 (Tuesday), the Japanese government demonstrated that it has demanded 5 registered and licensed crypto exchanges in the country (including bitFlyer and Quoine) to refit their internal systems, after discovering some flaws in the internal management systems of the exchanges that handle money laundering prevention and transaction monitoring.
Today, on June 22, bitFlyer ceased new account registrations and reviewed its internal management system to fix its AML and KYC processes. Local analysts have confirmed that the exchange reacted quickly to the requirement from the authorities because a previous report (published by the Mainichi Shimbun, the oldest newspaper in Japan that disclosed the Yakuza, the country’s biggest crime syndicate with over 100,000 members) declared that hundreds of millions of dollars were laundered via major cryptocurrency exchanges.