Japan's Financial Services Agency Orders moomoo Securities to Partially Suspend Operations, Halting New Account Openings for 3 Months

CoinFeed June 19 news, according to Nikkei, Japan's Financial Services Agency has issued a partial business suspension order to foreign online brokerage moomoo Securities, suspending solicitation and acceptance of new customer accounts from June 19 to September 18, and simultaneously issued a business improvement order requiring strengthened internal management, clarification of responsibility including management, and formulation of recurrence prevention plans. The FSA pointed out that moomoo Securities falsely claimed to customers that some products not eligible for the NISA (Nippon Individual Savings Account) program were NISA-eligible, suspected of violating the Financial Instruments and Exchange Act's prohibition on false statements. Additionally, the company had long failed to adequately examine and report suspicious transactions, and there were multiple deficiencies in internal controls such as cybersecurity.