Japan forces two more crypto exchange to close, while South Korea inspects cryptocurrency-related banks.

Japan's chief financial regulator, the Financial Services Agency (FSA), ordered two crypto-exchanges to suspend operations for two months due to inadequate execution of KYC procedures (know-your-customer).

The trading platforms Eternal Link and FSHO will temproaly stop working until 5 and 7 June, respectively. According to the inspection resulst, which lasted several months, these trading operators did not require clients to provide all the necessary information in order to identify and verify clients' identity. In addition, they did not report suspicious transactions to the FSA. The exchanges were also spotted in other violations of current legislation and requirements, applicated to cryptocurrency trading platforms in Japan. So, Eternal Link spent its clients' funds to cover operational expenses of the company. And FSHO and another Exchange Last Roots has not sufficiently increased the level of internal security to protect customers' personal data from potential cyber attacks.

Meanwhile, South Korea's financial regulators started inspecting three banks working with cryptocurrency accounts. Those banks are NongHyup (provides services to major exchanges Coinone and Bithumb), KB Kookmin and KEB Hana. First of all, inspections will concern compliance with the rules for combating money laundering (AML). The checks themselves will be carried out from 19 to 25 April by two departments, the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU). Totally, in South Korea, six banks provide services for cryptocurrency accounts. Inspections of the other three of them will be held later.