In lew of the recent scrutiny from the Japanese regulators, two cryptocurrency exchanges in Japan are reportedly on the verge of closing operations dues to the news of the $500 million theft.
According to Nikkei, two exchanges – Mr. Exchange and Tokyo GateWay – are withdrawing previously filed applications with Japan’s Financial Services Agency (FSA) in which they sought approval to launch services to domestic customers.
No official statements have been published by either exchange as of press time, though Mr. Exchange posted on March 8 that it had received an order requiring it to beef up its internal protocols in the wake of the attack on Coincheck in late January. The incident resulted in approximately $533 million worth of the cryptocurrency NEM token being stolen.
Per Nikkei’s report, the closures won’t occur until user funds have been withdrawn or otherwise returned.
Still, the development is notable, as earlier this month, Japanese regulators suspended two cryptocurrency exchanges, FSHO and Bit Station, citing security flaws. According to Nikkei, Bit Station has withdrawn its application with the agency, as have two others: Raimu and bitExpress.
“More are expected to follow, as the FSA has given several exchanges a chance voluntarily close before ordering them to do so,” the news service added.
Exchanges in Japan are required to register with the FSA, as mandated by a law that went into effect last March. While a number of exchanges have received licenses to date, the agency has nonetheless stepped up its oversight of the industry in the wake of the Coincheck hack.
CBDC & Cryptocurrency – All you need to know
Whenever the topic of money arises, two questions always come to mind; How do I get it & Where can...
The Single Victory of Many Companies; A Convexity Story
Governments and its various organizations are beginning to wake up to realize blockchain technology is an unstoppable force in the...
Why CBN Excluded Blockchain in its N500M Grant to Tertiary Schools
The Central Bank of Nigeria has introduced a program that will support entrepreneurship development in tertiary institutions...
Gods Unchained on OKEx Jumpstart Mining – Stake OKB to Earn GODS
One of the major reasons for the rapid growth in the blockchain & crypto space, is the industry’s ability to...
Top BSC Games User Activities Drop Sharply in 7 Days
Blockchain based gaming innovation known as GameFi has come with a bang, helping to introduce the concept...