Crypto Exchanges Raided By Japan’s Financial Agency

News, Regulation | February 9, 2018 By:

Japan’s Financial Services Agency (FSA) is reportedly examining the security measures of local crypto exchanges after the recent hacking attack on crypto exchange Coincheck, which led to the theft of more than $400 million in cryptocurrency.

Japan’s finance minister Taro Aso said on Friday that FSA officials have begun inspections at several crypto exchanges. The officials will try to determine if these companies are taking adequate steps to protect customers’ accounts.

“We have started on-site inspections on multiple operators to examine their internal management systems, including system risk management,” said Aso.

The country currently has 16 registered crypto exchanges and another 16 exchanges awaiting approval. After the Coincheck hack, The FSA ordered them to submit a report on their system risk management and storage of cryptocurrencies.

Aso said the FSA decided to inspect the crypto exchanges after looking into their reports. However, the finance minister declined to reveal the names of the operators that were inspected recently.

Aso also admitted that the government of Japan needs to strengthen its supervision of cryptocurrency exchanges to prevent any further problems.

Meanwhile, Coincheck, which suspended trading in all cryptocurrencies, except bitcoin, is planning to allow customers to make yen withdrawals. The company will reportedly permit yen withdrawals as early as next Tuesday after securing the safety of its computer system.

The company is also preparing to submit a report to the FSA by Tuesday. It will explain how it will reimburse customers and prevent further problems.