Japan’s Financial Regulator To Conduct Inspections Of 15 Unregistered Crypto Exchanges

in cryptocurrency •  7 years ago 

Japan’s Financial Services Agency (FSA) will conduct on-site inspections of 15 cryptocurrency exchanges that are currently awaiting registration in the aftermath of the Coincheck hack, the local news outlet The Japan Times wrote today, Feb. 16.

Japan-based crypto exchange Coincheck was hacked on Jan. 26 and around $530 mln in altcoin NEM was stolen.

As part of Japan’s legalization of Bitcoin (BTC) as a payment method in April 2017, crypto exchanges must be registered by the government. Crypto exchanges that had been operating in Japan before April 2017 were allowed to continue operations while applying for their registration, says The Japan Times.

Coincheck, which is unregistered but whose application was under review at the time of the hack, was inspected by the FSA after the hack on Feb. 2 to ensure user protection.

The FSA also ordered all crypto exchanges in Japan to submit a risk management system report in the wake of the hack. After receiving the reports from Japan’s 16 registered and 15 unregistered exchanges, the FSA ordered the on-site inspections of the unregistered exchanges. Coincheck has already submitted their report to the FSA on Feb. 13.

Financial Services Minister Taro Aso said that the on-site inspections will pay particular attention to computer system safety measures and the management of customer assets, reported The Japan Times.

https://cointelegraph.com/news/japans-financial-regulator-to-conduct-inspections-of-15-unregistered-crypto-exchanges

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