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Japan’s Finance Observer Ceases 2 Crypto Exchanges

Japan’s Finance regulators have ordered month-long delays for 2 domestic cryptocurrency exchanges.

On Thursday, the Financial Services Agency (FSA) claimed that it has issued business suspension orders to 2 exchanges – FSHO and Bit Station – effective for 1 month starting from today.

The FSA mandated that 7 trading platforms in total must refine their system security measures and submit a written improvement plan by March 22. Those 5 exchanges are Tech Bureau, GMO Coin, Mister Exchange, Bicrements as well as Coincheck, the exchange at the center of a recent $500 million robbery that sparked the ongoing probe by the agency.

According to some reports, the FSA had already entered in soon after receiving report that $500 million worth of the NEM token had been stolen in January. N accordance with statements at the time, the FSA detected Coincheck’s internal systems were absent, including insufficient anti-money laundering measures.

After its on-site inspection on Coincheck, the financial regulator also extended its study to other domestic crypto trading platforms that are yet to be approved by the FSA for insufficient security measures which included the 2 that are ceased today.

Elsewhere in the declaration, the FSA also created a cryptocurrency exchange industry study group the goal of which is to examine institutional problems regarding cryptocurrency.

According to the agency, participants of the study group will come from academic institutions, cryptocurrency exchanges as well as government agencies as watchdogs. In accordance with the statements, the FSA itself will serve as the secretariat.