Japan’s Financial Services Agency (FSA) has been carrying a series of inspections on exchanges in the country after the Coincheck hack in January which saw the exchange loose NEM worthy $534 million. The Agency has now moved to crack to exchanges suspending them and issuing the third one with a business improvement order.
FSA has been carrying on-site inspections to the country’s 15 unregistered cryptocurrency exchanges, and the agency has already stopped the operations of 2 exchanges. More to that the total number of exchanges sent business improvement notices has now improved to 7 which included Coincheck.
The exchanges whose operations have been stopped are External Link and FSHO. The two were ordered to stop their operation in receiving the stop order. They are to remain operational for two months until the convince FSA that they have complied with all regulatory orders as well as improved their system. On top of that FSA issued an improvement notice to Last Roots crypto exchange. The exchange is required to respond to the notice and present their improvement developments for inspections each month.
These have come barely a week after two crypto exchanges in Japan decided to shut down rather than continue working with the regulators for compliance. More to that we can confirm that Monex Group will buy Coincheck for 3.6 billion yen which is estimated to be $34 million. The sale may be coming at a good time for Coincheck investors when they are trying to recover from the hack which left many of them shaken. More to that the exchange is faced with regulatory problems so the sale may help follow the set procedures.
Exchanges have been having a hard time especially dealing with hackers who seem to be targeting the crypto sector. This is the main reason why FSA has decided to inspect all the exchanges in Japan to ensure that they are not prone to these cyber-crimes while still following the regulatory procedures.