Two Japanese Bitcoin exchanges FSHO and Bit Station ordered to suspend most of their cryptocurrency exchange operations for the period of one month. Inadequate security measures have been the point of FSA’s decision which is also establishing a study group for cryptocurrency exchange industry.
One month operation ban for security reasons
Just this morning, Japan FSA penalized the six cryptocurrency exchanges. Now, it has ordered the exchanges FSHO and Bit Station to suspend their business for a period of 1 month starting from this day i.e till April 7.
It came as a shocker as this is the first time that FSA has ordered a japan crypto exchange operator to suspend its business. It certainly is a huge step that shows FSA is not taking things lightly and is extremely serious about protecting the consumers’ interest.
During this one month, both the domestic cryptocurrency exchanges are banned from conducting most of their operations except cryptocurrency withdrawals among a few other services.
Based in Nagoya, a central city in Japan, a senior official of Bit Station was found using the bitcoins for personal means that was concluded as inadequate customer protection system by FSA.
As for Tokyo-based FSHO, the company lacked the sufficient system to check the transactions that are suspected of being related to money-laundering.
Japan FSA probing crypto industry
FSA has also issued a drastic business improvement order to Coincheck that lost about $500 million in a cryptocurrency hacking in late January this year. This order was in continuation of the first one that was slammed on 29 January.
After the onsite Coincheck inspection, the financial regulators further extended their probe into other exchanges as well that is yet to be approved by FSA.
There have also been reports that FSA has established a study group for cryptocurrency exchange industry whose objective is to inspect the issues present here. As per the statements, FSA will be serving as the secretariat and members of this group will be from cryptocurrency exchanges, academic institutions, and government agencies.
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.