Investing.com - Japan’s largest cryptocurrency exchange said it will stop accepting new clients after regulators said there were flaws in its internal management systems, including measures to prevent money laundering.
Tokyo-based bitFlyer said Friday it would stop taking new customers until it addressed the regulators’ findings.
The exchange said it plans to recheck the identities of existing customers after it found flaws in its earlier processes and to add safety measures to its computer systems before it resumes accepting new clients.
The Financial Services Agency also ordered five other cryptocurrency exchange operators to improve their practices against money laundering.
The agency has adopted a tougher stance on exchange operators after a hack on the Coincheck exchange in January when virtual currency worth around $530 million was lost.
Japan is one of the world’s most active crypto markets after rules put in place last year established bitcoin as a legitimate payment method.
Bitcoin prices have more than halved in 2018 after a climb to record highs of around $20,000 in December.