Japanese Regulator set Final Reject to a Crypto Exchange

The Japanese Financial Services Agency (FSA) after approving 16 cryptocurrency exchanges, is stated to reject a crypto exchange application for the first time
06 June 2018   941

The applicant is an exchange that has been suspended for 2 times from carrying out any activities and gained 2 business improvement orders. 

The first time it has done so. The decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate its business… By barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its determination to re-establish a sound currency trading environment in Japan.
Nikkei Asian Review

FSHO is known as a “deemed dealer” or “quasi-operator” of cryptocurrencies in Japan, meaning it has been let processing a crypto exchange while its application with the FSA is being reviewed. In the March order, FSA suspended all of FSHO’s businesses towards cryptocurrencies from March 8 to April 7 and published the firm a business improvement order. According to it, the company was offered to correct 4 areas of operations such as to “Build a position to securely manage user information.” The measures taken were to be presented to the agency by March 22. In the April order, the agency again suspended all crypto operations of the company from April 8 to June 7 and issued another business improvement order.

This second order includes 5 business improvement areas, some of what were the same as those in the first order. Among new areas are the “Establishment of an effective management system including money laundering and terrorist financing” and a risk management system. The firm was to report the changes to the agency by May 7.

As reported by Nikkei Asian Review, the FSA found that "the exchange did not sufficiently verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted". The suspension period is to be completed on Thursday, after that the agency will block the exchange from operating and reject its registration.

Brazil to Require Exchange to Report on User Transaction

It is reported new rules are aimed at countering tax evasion with cryptocurrency
20 June 2019   109

The Brazilian Federal Revenue Secretariat has obliged both local and international cryptocurrency exchanges to transfer data on user transactions to the agency, Cointelegraph reports.

New rules are aimed at countering tax evasion with cryptocurrency.

In particular, the Secretariat requires local trading platforms to provide information on all transactions of its users, and from global exchanges when the amount of the transaction exceeds 30,000 Brazilian reais (about $ 7,750).

In addition, the exchanges will have to inform the Office of the nationality, place of residence and user registration number, as well as the assets they use.

New rules will come into force in September 2019.

Earlier in June, it was reported that the J5 Group created by the tax authorities of the USA, Australia, the UK, Canada and the Netherlands is currently investigating 60 major international schemes for tax evasion using cryptocurrency.