ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Thursday May 24th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Local Bureau Of Japanese Finance Ministry Serves Business Improvement Order To Cryptocurrency Exchange

By

Matthew

De Silva

WriterETHNews.com

Regional authorities have joined the effort to bring cryptocurrency exchanges into compliance with Japanese law.

On April 25, 2018, cryptocurrency exchange platform "Everyone's Bitcoin" (みんなのビットコイン) published a notice (Japanese) regarding a business improvement order, which it recently received from the Kanto Local Finance Bureau (a regional department of Japan's Ministry of Finance). "We take this administrative punishment solemnly and sincerely, [and aim to] establish a posture for the proper and reliable execution of the virtual currency exchange industry," wrote the exchange. Everyone's Bitcoin humbly apologized to its customers and said that the company will work to restore their trust.

The company also explained a series of measures that it has implemented in order to comply with Article 63-16 of the Payment Services Act (Act No. 59 of 2009). These included:

  1. "Establishment of business management system
  2. Establishment of a management system related to money laundering and terrorist financing
  3. Construction of bookkeeping management system
  4. Establishment of management system related to user protection measures
  5. Build system risk management system and outsourcing management system
  6. With regard to the matters from (1) to (5) above, the content of measures taken shall be reported in writing until May 14, 2018, and at the request of the authorities from time to time as requested."

This is the first known action taken by a local Japanese government entity against a non-compliant cryptocurrency exchange. The majority of previous cryptocurrency-related enforcement actions have stemmed from the nation's Financial Services Agency (FSA). It appears that both the FSA and the Kanto Local Finance Bureau ultimately report to Tarō Asō, the deputy prime minister of Japan, who also serves as the minister of finance, minister of state for financial services, and minister in charge of overcoming deflation. 

Earlier this month, the FSA halted operations at two cryptocurrency exchanges (Eternal Link and FSHO) and issued a business improvement order to a third exchange called Last Roots.

On Monday, the Japanese Virtual Currency Exchange Association – which Everyone's Bitcoin is a member of – held its first meeting. The group appointed a chairman and two vice chairmen, but has yet to receive official recognition as a self-regulatory organization from Japanese government officials.

The dual nature of enforcement actions and oversight in Japan mirrors developments in the United States. While some state-level authorities have taken action including the Texas State Securities Board and NY Attorney General's Office, there have also been major actions on the federal level, including efforts by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). A self-regulatory organization proposed by the Winklevoss twins (owners of the Gemini digital asset exchange) is also part of the discussion in the US cryptocurrency regulatory arena.


Quotes translated as accurately as possible with assistance from Google Translate.

Matthew De Silva

Matthew is a full-time staff writer for ETHNews with a passion for law and technology. In 2016, he graduated from Georgetown University where he studied international economics and music. Matthew enjoys biking and listening to podcasts. He lives in Los Angeles and holds no value in any cryptocurrencies.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Japan, regulation or other Ethereum wallets and exchanges news.