bitFlyer, largest Japanese cryptocurrency exchange, halted registration of new users. The decision is due to the order of the Japanese financial regulator to improve flaws in its business operations.

bitFlyer will resume creating new accounts after bringing its business process management and security system into compliance with the requirements of the Financial Services Agency of Japan (FSA).

In addition to bitFlyer, FSA sent orders to improve business processes to five more cryptocurrency exchanges in Japan, which are Quoine, Bitbank, BITPoint Japan, BtcBox, Tech Bureau. All of them previously received a license from the Japanese financial regulator for trading operations with cryptocurrencies.

FSA discovered "flaws" in internal exchange management systems, including shortcomings in the anti-money laundering procedure.

According to the order, crypto exchanges should develop a plan for improving business processes and send it to the financial regulator before 23 Jul. Until all the requirements are met, companies will have to submit additional reports to the FSA on the 10th day of each month.

In early June, FSA for the first time denied to issue a license to a cryptocurrency exchange. The decision was made after the regulator considered the business management system of the Yokohama-based FSHO crypto exchange was not effective enough. FSHO is also the only Japanese crypto exchange, which received two warnings from the regulator in March and April, pointing at flaws in its security system.

The number of licensed cryptocurrency exchanges in Japan remains at the same level and is 16.