Five Cryptocurrency Exchanges in Japan Throw in the Towel
Five cryptocurrency exchanges in Japan are closing after their operators reportedly withdrew their applications with the Japanese financial regulator to operate crypto exchanges. They are in the process of returning clients’ cash and crypto holdings.
Five Exchanges Cease Operations
Tokyo Gateway and Mr. Exchange have withdrawn their applications; both were ordered by the agency on March 8 'to improve their data security and other safeguards after they were found to be lacking,' the publication noted. The two withdrawals follow three others by unregistered operators ' Raimu, Bitexpress and Bit Station. The news outlet elaborated:
The companies will leave the exchange business after returning clients’ cash and cryptocurrency holdings.
FSA Tightens Oversight
In addition, 11 others are allowed to operate while their applications are pending. This number does not include the five exchanges that have withdrawn their applications. Among the 11 is Coincheck which suffered a massive hack in January and lost 58 billion yen worth of the cryptocurrency nem.
Following Coincheck’s hack, the regulator began scrutinizing crypto exchanges heavily. All exchanges were inspected; on-site inspections were conducted on all unregistered operators. 'These exchange operators are required to have data security and other systems on par with those at the 16 registered exchanges,' the news outlet wrote, adding:
The FSA’s probes have so far found problems with corporate governance and internal controls. Some operators see little prospect of meeting the agency’s standards.
The FSA recently ordered a temporary suspension of two crypto exchanges and issued business improvement orders to five others.
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