Two Crypto Exchanges Suspended By Japan’s Financial Regulator
The Japanese Financial Services Authority imposed penalties on three secret transactions after examining the domestic exchange. Two of them were ordered to suspend operations. Officials are unhappy with the measures taken to prevent money laundering and systemic risk.
FSHO, Eternal Link crashes, Lastroots Told to improve
The sanctioned cipher platforms – FSHO, Eternal Link and Lastroots – have received orders to improve their business practices. These are things that have been promulgated by the Japanese financial regulator as part of ongoing checks on cryptocurrency swaps. According to the Financial Services Authority (FSA), penalties have been imposed due to unsatisfactory procedures to prevent money laundering and minimize systemic risk.
The Japanese financial regulator has ordered two of the exchanges to suspend their operations for two months. Eternal Link will stop operations from Friday, April 6, and FSHO is required to do the same on April 8, according to Reuters. Lastroots has received orders to improve its practices. The Minister of Finance of Japan is expected to present the full results of the FSA-led surveys.
In March, the FSA suspended two exchanges – Nagoya and FSHO-based bit stations again, ordered to terminate services until April 7. The agency said its operator had not Thoroughly scrutinize large transactions and do not take the necessary measures “to run the exchange in a decent and sure way.” According to the Japanese press, Bit Station was fined because its senior officials were implicated in embezzling customer crypto deposits. Similar allegations have led to the arrest of four senior representatives of two secret exchanges in Korea.
In early February, the FSA said it is examining all domestic crypto trading platforms, including 16 unregistered at the time of publication. The financial agency publishes a list of 32 cryptographic transactions, half of which are licensed to provide cryptocurrency exchange services.
Consequences of a big hack
The Japanese financial regulator has revised the case after the attack on Coincheck in January. Hackers steal NEM’s 58 billion yen (~ 550 million) from Japanese exchanges. Authorities are still investigating the robbery, one of the biggest secrets in history. Network security experts have warned that half of stolen NEM coins could have been washed out in the dark.
Code theft has become a major security problem in Japan, part of a growing trend for cybercrime. Last year alone, $ 6.3 million of cryptocurrency was stolen, and that was before hacking Coincheck.
Japanese authorities have decided to set up a cybercrime prevention center, including stealing passwords. 500 analysts and investigators from different branches of the country’s law enforcement agencies have joined the unit. At least 149 attacks involving cryptography took place in 2017, the Japanese National Police Agency recently revealed.
Earlier this week, the news found that the Monex Group in Tokyo was considering buying Coincheck. On Friday, the deal with online financial brokerage was confirmed. The research team behind the hacked exchange accepted a purchase price of ¥ 3.6 billion (~ $ 3.6 billion).