Japanese Bitcoin Exchanges Bit Station & FSHO Ordered To Suspend Their Business

Japan FSA ordered two japanese bitcoin exchanges to suspend their business for one month, FSA also warned coincheck to improve about cryptocurrency hacking.
Published by

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.

Also read… Coinbase Develops Crypto Index Fund With BitcoinAnd 3 Other Cryptocurrencies

Advertisement

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.

What your thoughts on Japan FSA going hard at cryptocurrency exchanges? How will it affect the cryptocurrency market? Let us know in your comments below!

 

Share
Casper Brown

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.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA Holdings, Inc. announced that it now holds $5.9 billion worth of Bitcoin. This cements…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025