Within a year, the site under review could neither reform the old system nor build a new one. The regulator lost his nerve.
The cryptocurrency company FSHO filed an application for permission to carry out cryptocurrency activities on September 26, 2017.
On March 8, 2018, the financial regulator conducted an inspection of the exchange and determined that it does not have adequate security systems, carries out suspicious transactions and does not adhere to Know Your Customer (KYC) procedures, and therefore suspended the exchange's activities for a month and ordered the exchange to improve security and adhere to all necessary procedures for the proper conduct of activities in the digital currency industry.
Among other things, the regulator ordered the exchange not to carry out transactions that may be associated with money laundering and terrorist financing, and also to install systems that settle transactions in real time.
On March 23, the regulator conducted another inspection and on April 6 issued another order to improve operations, and also offered the exchange the assistance of external lawyers and certified auditors, but the company did not respond to the regulator’s demands properly. In this regard, the Japanese Financial Services Agency rejected the application of the FSHO exchange.
According to ccn
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