bitFlyer to suspend New Accounts due to Strict Regulation

3 days after the Japanese government demanded crypto exchanges to improve their infrastructures, bitFlyer has suspended the registration of new accounts
22 June 2018   355

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.
Spokesperson, FSA
(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.

Gemini & Partners to Launch Virtual Commodity Association

Association is created to develop standards for the industry, promote transparency in the market and cooperate with regulators, including the CFTC
20 August 2018   92

Several major exchanges decided to create a new structure designed to eradicate manipulation in the digital assets market, Bloomberg reports.

The Virtual Commodity Association was formed by the founders of the exchange Gemini Cameron and Tyler Winklewoss. According to a statement released on Monday, the group also included Bitstamp, BitFlyer USA and Bittrex. Representatives of four trading platforms will meet in September to consolidate the provisions for the future functioning of the organization.

The Virtual Goods Association will develop standards for the industry, promote transparency in the market and cooperate with regulators, including the Commodity Futures Trading Commission of the United States (CFTC), in order to prevent manipulation of Bitcoin, Ethereum and other currencies.

As the temporary executive director of the organization, Maria Filipakis, who worked in the Financial Services Department of New York, was appointed, where she took part in the creation of a BitLicense.

Earlier, the Winklewoss brothers tried to launch their own ETF, tied to bitcoin, but the US Securities and Exchange Commission denied them twice, as the reasons for its decision, among other things, calling for the absence of adequate measures to prevent cryptocurrency market manipulations.