The Japanese Financial Services Agency (FSA) reportedly raided two of the nation’s cryptocurrency exchanges last week, according to two sources cited in a Reuters report published on Tuesday. The regulatory body apparently executed the surprise inspections to investigate issues related to anti-money laundering and customer safeguards.
The FSA’s raids were designed to inspect the Fisco Cryptocurrency Exchange and Huobi Japan. Both companies have made changes in their management structures recently, and the agency was reportedly concerned about compliance and protection issues in the wake of those changes.
The inspections occurred against the backdrop of the FSA’s ongoing efforts to secure oversight of the digital currency industry. Japanese officials view the industry and other parts of the fintech sector as critical for the country’s future economic growth and innovation.
Reuters apparently contacted both exchanges and received no comment on the matter.