25 Jun 2018
Japanese Regulator FSA issues improvement orders for six local cryptocurrency exchanges, namely the bitFlyer, QUOINE, Bitbank, BTCBOX, BITPoint Japan and Tech Bureau. How did exchanges react?
25 June, AtoZ Markets – The Japanese officials are still continuing to investigate the cryptocurrency sector. In the latest developments, some of the online reports suggest that more exchanges are going to suspend their operations. Some might even shut down, reports state.
The financial regulator of Japanese markets, the Financial Services Authority (FSA) has issued a number of business improvement orders to six local cryptocurrency exchanges. The exchanges that received improvement orders are the bitFlyer, QUOINE, Bitbank, BTCBOX, BITPoint Japan and Tech Bureau.
bitFlyer has made an announcement in regards to the FSA improvement orders:
“In order to maximize our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition. We apologize for any disturbance or worries imposed on our customers by these actions.”
The news emerges as Japanese regulators are continuing to look into the security procedures of the local cryptocurrency exchanges. The increased scrutiny appears following the Coincheck’s $530 million hack attack in January. The new increased power of the recent hacks has resulted in the regulator carrying out some on-site inspections on all cryptocurrency operators. Then, the checks have revealed a number of issued with internal controls, security, and corporate governance.
In fact, some of the cryptocurrency exchanges have decided to leave Japanese market due to the increased attention from the regulators’ side.
Yet, a number of cryptocurrency market experts believe that the Japanese regulatory clampdown is a positive sign. It means that the country is currently developing an environment, in which investors can feel safe while trading and storing their coins.
Japan has long been perceived as a global cryptocurrency hub, with its trading volumes on local crypto exchanges trespassing crazy numbers. Throughout the last year, the number of market participants has also significantly risen.
In general, 2017 has been a turnaround year for cryptocurrencies in Japan. A survey that has been carried out by the Japanese regulator FSA has revealed that 3.5 million investors had holdings in at least one cryptocurrency.
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