Japan's FSA freezes two crypto-exchange exchanges

March 8, 2018

Financial regulators in Japan (FSA) for a month suspended operations for two domestic crypto-exchange exchanges.

The Financial Services Agency (FSA) reported on Thursday that a decision was issued to suspend the business to two exchanges – FSHO и Bit Station. Frozen activity of crypto-exchange exchanges will last exactly one month.

The FSA ordered six trading platforms to improve the quality of the system's security measures and to submit an 22 March written improvement plan. Four of these exchanges are Tech Bureau, GMO Coin, Mister Exchange and Coincheck.

As previously reported, the Agency of Financial Services has already conducted research, especially after the exchange of Coincheck stolen 500 million dollars in the equivalent of NEM crypto currency. According to the statement at that time, the Financial Services Agency found that Coincheck's internal protective systems are not available, including missing and adequate measures to combat money laundering.

After such an investigation, the financial regulator decided to check other exchanges of the domestic market. As a result of the inspection, the activity of FSHO and Bit Station was suspended for exactly one month. In addition, the financial services agency expands its horizons and is going to check all the previously not approved exchanges for security. FSA also established a research group that will focus on the institutional issues related to crypto currency.

Previously, we reported that, that FSA legalized a number of new exchangers.

Author: Andrey, analyst Freedman Club Crypto News

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