Japan’s Financial Services Agency (FSA) is looking into two major cryptocurrency exchange platforms as part of an investigation.
According to a report published by Reuters Japan on April 23, 2019, the investigation by the financial watchdog is connected to the legal compliance and customer protection standards of trading platforms Fisco Digital Asset Group (FDAG) and Huobi Japan, the Japanese subsidiary of Huobi Global.
FDAG recently acquired the crypto exchange Zaif, which was hacked last year, from Tech Bureau for $44.7 million. Huobi Global, meanwhile, expanded into Japan through the acquisition of the regulated exchange BitTrade.
Citing anonymous sources close to the companies, the Reuters report claims that the FSA’s inspectors primarily examined the companies’ internal oversight while also suggesting that there are certain insufficiencies in “the management systems of the two companies and their efforts to protect customers.”
Earlier this year, Huobi Korea, the South Korean subsidiary of Huobi Global, announced…