Japanese Regulator Could Suspend Some Crypto Exchanges
japanese·@cryptofy·
0.000 HBDJapanese Regulator Could Suspend Some Crypto Exchanges
 Authorities in Japan are allegedly preparing to perform crack down on crypto exchanges by issuing of administrative punishment notices to different exchanges and shelving others from carrying out the business.  The move comes only a short time after Coincheck, Japanese cryptocurrency exchange was hacked. As reported in Nikkei, the country's Financial Services Agency response comes after finding out some issues with anti-money laundering procedures and customer protection with various exchanges. According to the source, various exchanges had experienced flawed processes, which is an indication they were vulnerable to money laundering and could not guarantee the safety of customers’ cash. According to Reuters, it is not clear the exact punishments or which exchanges may receive notices.  It is likely; at least, Coincheck will get a notice to raise the standards of its systems, which will be the second security notice to the exchange, according to Nikkei. The FSA scrutinized exchanges to assess their cryptocurrency storage methods in addition to risk management over the previous few weeks, although results of the investigation are yet to be released. The regulator examined both unlicensed and licensed exchanges, requesting them to self-report their safety protocols and last month, 15 unlicensed exchanges were inspected, as previously mentioned.  The FSA's efforts to stringently regulate cryptocurrency exchanges commenced after Coincheck permitted to lose nearly 500 million NEM tokens from digital wallets. Before the hack, Coincheck was operating as an unlicensed exchange. 