Crypto exchanges Huobi Japan and Fisco under Japanese regulator's microscope

The Japanese Financial Services Agency (FSA) "raided" two local cryptocurrency exchanges—Huobi Japan and Fisco—last week, two anonymous sources told Reuters. Both companies have recently seen significant management changes, which reportedly prompted the FSA's inspection of their compliance procedures.

“The FSA investigations were designed to ensure appropriate measures have been implemented for customer protection and legal compliance after the management changes,” sources told Reuters. All Japanese exchanges have to register with FSA and must abide by their reporting standards.

Huobi Japan was set up last year following the acquisition of government-registered exchange BitTrade. Meanwhile, Fisco recently took over Zaif, another regulated exchange which suffered a $60 million cryptocurrency heist. Neither party responded to comment.