Japan holds crypto exchange FISCO on the grounds of anti-social activities

The Financial Service Agency (FSA) took FISCO cryptocurrency exchange to task earlier today for business violation. This development comes as an aftermath of FISCO’s raid that was carried out in February. The raid directed FISCO’s involvement in violating the government’s rules and regulations and for non compliance to the nation’s legal policies.

With FISCO, Huobi another major crypto exchange was raided in April, after both the companies had a change in the management and FSA wanted to ensure if proper measures were implemented after the management changed hands. Some of the violations in question are related to money laundering and terrorist funding activities.

According to the FSA, the exchange’s management must rework on having a sound management system, setting up an internal management department, and establishing an audit department. In the context of the aforementioned violations, the Japanese officials also suggested crypto exchanges in maintaining an effective risk management system from immediate effect.

Although this development is well positioned to alert the other player, the crypto community is not new to such raids aimed at eliminating malicious activities. Just last year, South Korea-based Upbit crypto exchange was also victim of a similar raid for anti-social activities. The charges levied by the financial investigation team of the Seoul Southern District Public on the exchange were manipulating balance sheets, and selling cryptocurrencies it does not hold. While several speculations were made around the exchange’s existence post the negative publicity, the company eventually managed  to receive a clean chit from the accusations.

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