Two vice presidents of the Japan Virtual Currency Exchange Association have left the organization after receiving business improvement orders from the Financial Services Agency.
On June 25, it was announced that CEO of bitFlyer Yuzo Kano and the CEO of Bitbank (listed as Noriyuki Hiroyuki in the release but Noriyuki Hirosue elsewhere), are resigning from their positions as chairs of the Japan Virtual Currency Exchange Association (JVCEA). Both cryptocurrency exchanges received business improvement orders from the Financial Services Agency (FSA) last week. Their resignation precedes the JVCEA’s June 27 vote on a set of self-imposed rules designed “to improve the security and transparency of virtual currency exchanges.”
As of publication, both exchanges were still listed as members of the JVCEA on the association’s website.
Despite these exits, the association stated it “will continue to do [its] utmost to protect the interests of users and to promote the sound development of the virtual currency exchange industry, including the early establishment of voluntary regulation rules.” The association has not stated who might be replacing the two executives.
Japan has seen an increase in cryptocurrency exchange regulations after the January 26 Coincheck hack, and the FSA has conducted surprise inspections of exchanges since at least February. The FSA requires exchanges to follow strict guidelines, including know your customer (KYC) and anti-money laundering (AML) regulations.
On April 6, the FSA ordered the exchanges Eternal Link and FSHO to cease operations. After further evaluation, the FSA denied registration to FSHO earlier this month – it was the agency’s first denial of registration to a cryptocurrency exchange.
Translations by Google.
Daniel Putney is a full-time writer for ETHNews. He received his bachelor’s degree in English writing from the University of Nevada, Reno, where he also studied journalism and queer theory. In his free time, he writes poetry, plays the piano, and fangirls over fictional characters. He lives with his partner, three dogs, and two cats in the middle of nowhere, Nevada.
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