Japan's Financial Services Agency (FSA) is going to issue business improvement orders to over five registered cryptocurrency exchange operators, including bitFlyer and Quoine, according to Nikkei Asian Review.

The report follows the rejection FSHO’s cryptocurrency exchange application by the regulator earlier this month. The FSA has issued business improvement orders to a number of cryptocurrency exchanges in the past couple of months including Coincheck, Bitcrements, Bit Station, GMO Coin, Tech Bureau, Lastroots, Eternal Link, Blue Dream Japan, Bmex, Minnano Bitcoin, and others.

In its investigations, the agency found flaws in the exchange operators' internal management systems, such as measures to prevent money laundering, according to the Nikkei report.

In addition to bitFlyer and Quoine, Bitbank, BITPoint Japan and BtcBox are expected to receive the improvement orders by the end of this week.