Japanese exchange Bitflyer has suspended the input and output of crypto-currencies because of the ongoing KYC check. In June, the site received an order for improvement from the financial regulator in the country after the FSA audits conducted in the offices of the company over the past few months.
It is reported that Bitflyer has suspended the work, as fully verify the identity of customers. According to Nikkei, Bitflyer has also suspended the registration of new users in the last month that can continue for some time due to lack of resources.
In cryptocurrency trade Deposit and withdrawal of funds are considered the main stage of money laundering. According to the Agency for financial services authority (FSA), Bitflyer has neglected to verify the identity of its users, enabling the crooks or members of the Japanese mafia (Yakuza) to trade cryptocurrency. For this reason, the company is now double-checking the data of its customers and all deposits and withdrawals in cryptocurrencies.
According to one customer, despite a request for withdrawal of 25 June, he couldn’t get them on 2 July.
In may last year, the newspaper Mainichi revealed
information that some units of organized crime syndicates in Japan, also widely known as the Yakuza, has been using a crypto currency exchange to launder money. According to Mainichi, the Japanese mafia paid over $270 million abroad through cryptocurrency platforms.
«We strongly recommended that the six licensed cryptomeria to eliminate all ties with criminals,» said the FSA.
Since the cryptocurrency industry in Japan continues to grow, the FSA pointed to the need for collaboration kryptomere and local authorities to create a more secure environment with appropriate monitoring systems, including identification of users.
Although Japan was historically known by the police in cooperation with the local mafia, the recently adopted laws on the exclusion of organized crime, which entered into force in 2011, provide for criminal liability of individuals or companies that interact with them in a business environment. Power companies receive a warning, as did the FSA on 22 June. In the event of further violations, the responsible person may be fined or imprisoned.
18 Jun in Japan, entered into force a ban anonymous cryptocurrency which also aimed at combating money laundering organized crime. This has forced local stock exchanges to delist altcoins XMR, DASH, REP and ZEC.