In an attempt to comply with the requirements of the Japan Financial Services Agency and the need to protect the interests of traders and investors, Bitflyer will block the accounts of users suspected of price manipulation.
Bitflyer, Japan's largest cryptocurrency platform, has not yet started registering new users. The exchange was forced to make this decision under pressure from the country's main financial regulator, the Financial Services Agency (FSA).
Japan's FSA strengthened control over crypto exchanges at the beginning of the month. According to the agency, to improve the safety and protection of investors, cryptocurrency exchanges should improve the operation of their internal systems and provide plans for changes. Six crypto platforms, including Bitflyer, received such warnings. Now the exchange has made a new announcement for users. The press service of the trading platform administration warned that, in accordance with the Terms, the exchange has the right to block accounts that are suspected of deliberately manipulating the market prices of crypto assets. Bitflyer intends to continue its policy of protecting investors from market manipulation.
Apparently, this statement by the administration is related to the work improvement plan provided to the FSA in response to the order.
The order to take measures to eliminate security vulnerabilities and optimize the management structure, as well as prevent the possibility of manipulating the crypto market, received by Bitflyer from the regulator, contains 10 points. Bitflyer became the only exchange that was recommended to take “radical measures” in its management system and eliminate “anti-social elements.” This is despite the fact that at the beginning of July the exchange already had to temporarily suspend operations and verify the identity of users, at the request of the FSA. Then the agency accused the exchange of neglecting its KYC policy, which created conditions for anonymous cryptocurrency trading by scammers and the mafia.
Five other crypto exchanges, Bitbank, Bitpoint Japan, Btc Box, Quoine and Tech Bureau, received warnings from the regulator at the same time. Their list of demands from the agency contains less than ten points, and does not include such drastic measures.
Now Bitflyer is trying to follow the improvement plan that the crypto platform submitted to the FSA on July 23.
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