Japan Cracks Down on Two Cryptocurrency Exchanges

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The Japanese Financial Services Agency (FSA) has closed down two cryptocurrency exchanges today (Thursday March 8th). The exchanges will be forced to close their doors for a 30 day period.

The exchanges targeted by the crackdown are FSHO and Bit Station.

FSHO was accused of not giving a proper training to their employees and not making the necessary efforts to develop an effective solution to monitor the users’ trading.

Bit Station was charged because one of their long-time employees used the exchange to divert cryptocurrencies to his personal account. This shows that the exchange has a big lack of cybersecurity according to the FSA.

Japan is aspiring at becoming the cryptocurrency mecca of the world. Currently, there are already 30% of the world’s Bitcoin transactions that are processed in Japanese Yens.

In September 2017, the FSA started to legally recognize cryptocurrency exchanges that met their security and efficacy standards. There are now over 15 registered cryptocurrency exchanges that are lawfully operating in Japan.

Today, the Japanese FSA also dispensed business improvement orders to 5 other digital currency exchanges. These exchanges include CoinCheck, which has already received a business improvement order in January after a $690 Million hack.

 

 

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