Japan: Issued Kanto Regional Financial Bureau decision suspending CoinBest business operation and requiring proposal for business improvement plan

On 14 June 2024, the Kanto Regional Financial Bureau issued a business suspension and a business improvement order to CoinBest, a cryptocurrency exchange service provider. The suspension, effective from 14 June 2024 to 13 December 2024, stops the company's Initial Exchange Offering (IEO) business, where cryptocurrencies issued by issuers are sold on their behalf. The orders mandate CoinBest to establish and enhance management control, internal control, including systems for new cryptocurrencies such as IEO operations, internal audit systems, and a risk management system for money laundering and terrorist financing. The measures were imposed following an investigation, which found deficiencies in the company's management control system, internal control system, internal audit system, and money laundering and terrorist financing risk management system during an on-site inspection and subsequent reports. CoinBest is required to submit a detailed business improvement plan by 16 July 2024 and report on the progress every three months until completion, starting from the end of September 2024.