Finance regulators in Japan have just suspended two domestic cryptocurrency exchanges. According to the Financial Services Agency (FSA), the Japan’s regulators have issued business suspension orders to two exchanges – FSHO and Bit Station – which will be effective for one month starting from today.
The FSA also mandated that seven trading platforms in total should improve their system security measures and submit a written improvement plan by March 22. If not, they will risk a suspend on their exchanges. The four exchanges include the names of Tech Bureau, GMO Coin, Mister Exchange, Bike Limited as well as Coincheck which is the exchange that was in focus of the recent $500 million heist worth of NEM tokens.
It seems like Japan’s FSA is doing the best they can to protect the users. After stepping in on the situation with the Coincheck hack, they discovered that the exchange lacked internal systems and had inadequate anti-money laundering measures.
The financial regulators in Japan are also focused on other domestic crypto trading platforms that are yet to be approved by the FSA for their inadequate security measures. Obviously, this includes the two that were suspended today.
The FSA also established a study group that will examine the cryptocurrency exchange industry and check for potential issues regarding cryptocurrencies. According to the agency, the group will be comprised of members from academic institutions, cryptocurrency exchanges and government agencies.
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