GMO has vowed to improve after they were ordered by Japanese regulators to upgrade

Improvement plan

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Japanese cryptocurrency exchange GMO Coin has stated that it will improve its operations. The exchange has already tabled a business improvement report to the Japanese financial regulators. More to that GMO Internet has also set up an information security audit office which will be in charge of the entire group.

The announcement about the establishment of the Group Information Security Audit Office was made on Friday with the main aim being to strengthen information security management as well as an audit function in the entire group. According to GMO: “Our aim is to protect important customer information from the increasing cases of cyber-attacks. We are coming up with highly secured countermeasures which will help us improve group information security literacy while fostering security personnel.”

The efforts follow an order issued to GMO Coin by the Japanese Financial Services Agency ordering them to improve after conducting an inspection in the exchange. FSA has been inspecting crypto exchanges in the country after the hack of Coincheck which was one of Japans most influential exchanges. According to FSA GMO Coin is supposed to implement an effective system risk management structure under the law of funds payments.

The exchange was authorized by FSA to start trading last year September. It’s a subsidiary of GMO internet which is Japans largest internet company. The mother company is also involved in crypto mining.
After the order for improvement by FSA GMO Coin went ahead to submit an improvement plan as required by the agency. Following the submission of the plan, the exchange will now be required to report on its progress on the implementation of the improvement plan by the 10th day of each month until the improvement process is complete.

GMO improvement strategy

According to GMO Coin, their management team has already analyzed and investigated the main causes of system failure and is already formulating concrete countermeasures. According to them, the business improvement plan will include quality control and configuration management system, business management systems, information security and cybersecurity and lastly contingency corresponding readiness business plan in the event of a possible failure.

The company went on to apologize to customers stating that they were sorry for any inconveniences or worries that stakeholders and customers may have experienced. They went on to add that: “We are committed to taking this administrative punishment very seriously, and we will undertake improvement plans to ensure that we have an improved risk management system to ensure that our customers are secure and safe.”

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