Punishment of some cryptocurrency exchanges in Japan

Punishment of some cryptocurrency exchanges in Japan

Several cryptocurrency exchanges will receive the administrative punishment notices, some of them will have to withhold their business.

According to Nikkei business daily, this week Japan's financial regulator will slap administrative punishment notices on several cryptocurrency exchanges. It will make some of the unregistered exchanges to stop their business.

Nikkei doesn't point the names of exchanges and doesn't clear up what the punishments would force.

The Financial Services Agency will carry out the examination of the cryptocurrency exchanges on reliability of customer protection and possibility of money laundering. If the FSA will indicate unconformities it will apply the punishments.

As you know, in January the large cryptoexchange Coincheck Inc was attacked by hackers in $530 million theft of digital currency.

That is why FSA will exam all cryptocurrency exchanges in Japan on security weakness, making them to present reports on their system risk management and storage of cryptocurrencies.

After the theft Coincheck promised to pay around $425 million, which were lost in the cyberheist.

Earlier Japanese cryptoexchanges reported to form a new organization to establish industry business practice standards, aimed to prevent illegal activity with digital money.

Money Partners Group Co. President Taizen Okuyama, a head of this organization, said: "This is an industry-wide effort to self-regulate, aimed at building an environment where people can feel safe to use these exchanges as soon as possible."



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