Japanese regulator suspended the activities of two cryptocurrency exchanges

Japanese regulator suspended the activities of two cryptocurrency exchanges

Financial regulator of Japan imposed sanctions on three cryptocurrency exchanges after a series of inspections of trading platforms in the country. The two commercial platforms have been ordered to suspend trading activities. The regulator is not satisfied with the measures taken to prevent money laundering and minimise systemic risks.

The financial services Agency (FSA) has suspended the FSHO and Eternal Link, and Lastroots received the instruction to carry out a number of measures to improve security measures.

Eternal Link had to stop work from April 6, FSHO since April 8. It is expected that Japan’s Finance Minister will present the full results of the investigations conducted by the FSA.

In March, the regulator has already suspended the work of two cryptocurrency exchanges — Bit Station and the aforementioned FSHO, which by order of the FSA was forced to pause for a month. The Agency reported that the leadership of the FSHO has not conducted thorough inspection of large-scale transactions and has not carried out necessary measures “for the safe operation of the exchange”. According to Japanese press, Bit Station came under sanctions due to the fact that its senior officials was involved in the theft of cryptocurrency deposits. Such accusations led to the arrests of four senior representatives of two cryptocurrency exchanges in South Korea.

In early February, the FSA said that checks all cryptocurrency platform in the country, including 16 platforms that were not registered at the time of application. The regulator has published a list of 32 of cryptocurrency exchanges, half of which has already received a license from the FSA for the provision of services for the exchange of cryptocurrencies.

Such measures, the Japanese regulator made after the notorious hacking Coincheck in January. Authorities still are investigating the largest in the history of cryptocurrency Heist. According to experts on cyber security, cyber criminals were able to launder the vast majority of NEM tokens with darknet channels.

Crime in cyberspace has become a real problem in Japan. In 2017 as a result of theft or fraud, lost more than $6.3 million in the cryptocurrency, and that’s not counting theft of $530 million from the stock exchange Coincheck.

The Japanese authorities decided to create the center, which is dedicated to the fight against cyber crime, including the theft of cryptocurrency. The command employs approximately 500 analysts and investigators from different law enforcement units in the country. According to the National police Agency of Japan in 2017, was not less than 149 attacks associated with cryptocurrencies.

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