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

February 16, 2018 4:53 pm Published by

On-site inspections of 15 cryptocurrency exchanges currently awaiting registration in the aftermath of the recent Coincheck hack will be conducted by Japan’s Financial Services Agency (FSA), The Japan Times reported Friday.

On Jan. 26, Japan-based crypto exchange Coincheck was hack with around $530 million in altcoin NEM stolen, the report said.

Crypto exchanges, Cointelegraph reported, must be registered by the government as of April 2017 as part of Japan’s legalization of Bitcoin (BTC). 

Crypto exchanges operating prior to that date were allowed to continue operations while applying for their registration, the Japan Times reported.

On Feb. 2, the FSA inspected Coincheck to ensure user protection as the cryptocurrency exchange is unregistered but its application was under review at the time of the hack.

All crypto exchanges in Japan, the report said, were required 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.

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.

WN.com, Jack Durschlag

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