Fisco and Kushim Fined for Failure to Record Cryptocurrency Losses, Financial Services Agency Oversight Committee Points Out False Reporting

The Financial Services Agency's Securities and Exchange Surveillance Commission (SESC) on the 5th recommended to the Prime Minister and the Commissioner of the Financial Services Agency that fines be imposed on cryptocurrency issuer Fisco and blockchain-related consulting firm Kushim for failing to properly account for cryptocurrency losses and making false statements in their securities reports, in violation of the Financial Instruments and Exchange Act's disclosure regulations. The fines, calculated based on the Financial Instruments and Exchange Act, are set at 15 million yen for Fisco and 12 million yen for Kushim.

According to reports by the Nikkei, Fisco had artificially inflated the price of its own cryptocurrency, 'Fisco Coin'. Former management was involved in the trading...