Japanese crypto exchange Fisco receives business improvement order by regulator

Japanese cryptocurrency exchange Fisco has received a business improvement order by the country’s financial regulator.

The Financial Services Agency (FSA) announced  the news Friday, saying that Fisco management "did not recognize the importance of legal compliance", which led to "a number of legal violations."

There have also been issues with the exchange's business management system and the risk management system for money laundering and terrorism financing, the FSA said.

Fisco was reportedly “raided” by the FSA back in April, to ensure "appropriate measures have been implemented for customer protection and legal compliance after the management changes.”

The regulator has now, therefore, ordered Fisco to set up a management system where "the functions of the internal management department and the audit department can be fully realized," as well as to put up in place legal compliance. Fisco has also been asked to establish a risk management system, outsourcing management system, book document management system and audit system, according to the announcement.

A business improvement plan needs to be submitted by Fisco in writing by July 22, the regulator said. 

Fisco is also the owner of Zaif crypto exchange, which suffered a massive hack of around $62.5 million and lost bitcoin, bitcoin cash and monacoin in the breach. Zaif only recently resumed full services under the new owner Fisco. It was earlier operated by Tech Bureau, which sold the business to Fisco for $44.7 million last year. 

The FSA was also reportedly investigating cryptocurrency exchange Huobi Japan in April.