The Department of Justice warns: Compliance after the fact is insufficient for probation in the encryption platform.

Recently, a prosecutor from the Ministry of Justice expressed opinions regarding a case involving a well-known Crypto Assets trading platform. The prosecutor pointed out that although the platform and its responsible individuals did take measures to strengthen Compliance after being investigated, this was not sufficient to serve as a reason for sentencing to probation. He believed that while this corrective action after the fact is commendable, it should not serve as a basis for reducing penalties.

Prosecutors emphasized that they do not equate the platform's leader with defendants in other high-profile Crypto Assets cases, nor do they consider him an extremist. However, prosecutors warned that sentencing probation in such cases could send the wrong message to other potential violators, encouraging them to take risks and engage in illegal activities on a larger scale.

It is worth noting that the court had previously expressed basic agreement with the probation office's recommendation, which considered a prison sentence of 10 to 16 months, plus a supervised release period of 1 to 3 years. This preliminary opinion prompted the aforementioned response from the prosecutor, demonstrating the judiciary's cautious attitude in handling cases related to Crypto Assets.

The final verdict of this case is still pending further deliberation by the court. In any case, this incident once again highlights the challenges faced by the Crypto Assets industry in terms of Compliance and regulation, and serves as a wake-up call for the industry, reminding relevant companies to proactively strengthen their Compliance measures rather than passively respond after problems arise.