Nikkei News reported that the Japanese Financial Services Agency (FSA) issued a 'business improvement order' for the exchange and five other exchanges. Other targeted exchange operators include Bitbank, Japan's BITPoint and BtcBox.
The regulators found that the security measures taken by the exchange were not sufficient to prevent money laundering and terrorist financing. It also pointed out that the internal management system of the exchange was flawed. In an announcement issued on it, bitFlyer had already apologized to the customer due to the 'business improvement order'. The inconvenience this caused. The Exchange further added that it is taking all measures to ensure compliance with the law so that these orders do not 'recurred'.
BitFlyer must submit a written improvement plan to the FSA by July 23. It must also report to the agency through the written monthly report on the progress of its improvement plan. bitFlyer is one of the 11 cryptocurrency exchanges approved by the FSA in September last year - Six of these exchanges have now been requested by the Japan Financial Services Authority (FSA) to improve operations.
According to CoinMarketCap, the exchange is currently the 23rd largest exchange in the world and has traded more than $72 million in the past 24 hours. The exchange expanded its business to Europe earlier this year and claimed to be the only one allowed between Europe and Japan. An authorized exchange for cross-border Bitcoin transactions.