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Japan Bans 7 Exchanges as Threat of Hacks Looms Large on the Crypto World

Japan Bans 7 Exchanges as Threat of Hacks Looms Large on the Crypto World copy

After Coincheck reported losses in millions earlier in the year due to a hack it was about time authorities in Japan crack down hard on these exchanges and the latest news coming out of Japan suggests that’s exactly what has happened.

FSA, Japan’s Financial Service Agency investigated exchanges across Japan and is reported to have scrutinized 7 exchanges with 2 of them suspended indefinitely citing lack of measures in order to protect customer assets and identities.

Financial Service Agency - Japan

Bit Station and FSHO are the 2 exchanges that have been told to stop operations from 8th March to 7th April and their registrations are currently under review by the FSA while another 2 exchanges need to submit improvement plans by the 22nd of March.

Bit Station has been accused of using customer Bitcoins for personal motives and have also withdrawn their application for registration.

Apart from that, Tech Bureau, GMO Coin, Lemuria Bitcoin Exchange (Bitcrements), Mister Exchange, and the much-maligned Coincheck are other exchanges that have been ordered to make updates to shore up security for customers.

Ever since the implementation of the Payment Services Act in 2017, it’s mandatory for each exchange to register under the FSA. In total Japan has licensed a total of 16 exchanges while 6 other exchanges commence operations as quasi-operators i.e. their application is yet under review but that’s not all. The boom in the crypto market means there many more such exchanges looking to make a foray into the Asian markets via Japan.

For the exchanges yet pending registration, the rules as of now are quite simple. Either get the registration completed on time and adhere to the required standards or withdraw your application and as for the licensed exchanges, timely improvements are a must.

FSA has their say on CoinCheck

CoinCheck became the talk of the crypto world ever since the news of its hack broke out in January which resulted in a loss of about $550 million in NEM Tokens which also resulted in a sharp drop in the price of the cryptocurrency.

CoinCheck

And while FSA has asked CoinCheck to beef up their security and put into place plans for improvement of their platform they have also stated that CoinCheck is capable of refunding the lost money to the users erasing doubts over the financial capabilities of CoinCheck ever since it announced of its plan to refund part of the lost funds.

CoinCheck isn’t the only exchange to have been hacked in the past year and that is why we at TokenRadar24 do not recommend investors to leave their assets on exchange wallets and instead use desktop or hardware wallets.

What do you think about FSA suspending and punishing these exchanges? How do you store your crypto assets?

About the author

subhash

With over three years of experience in the field of cryptocurrencies, Subhash decided to put his knowledge and experience in front of thousands of people though Tokenradar24. You can connect with Subhash on LinkedIn and Twitter.

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