Japanese regulator to suspend several cryptocurrency exchanges while others will be punishment
|- An undisclosed number of exchanges will be issued with suspension notices.
- The Financial Services Agency will monitor Coincheck to ensure customer compensation.
The Japanese financial regulator is reported to have issued punishment notices to several cryptocurrency exchanges. At the same time, an undisclosed number of cryptocurrency exchanges will be suspended.
The loss of $534 million from Coincheck exchange in January this year, triggered investigations by the Financial Services Agency (FSA). Consequently, the initial stages of the investigation are over and as a result, the FSA will be punishing various cryptocurrencies. The punishment is due to the lax security measures taken by the exchanges to protect the investors' funds and the anti-money laundering features incorporated in their systems.
The exchanges will be issued with suspension notices for continuing to operate at the time when their ‘Payment Services Act’ applications are in the process of approval. Similarly, FSA will be issuing a ‘business improvement order’ to Coincheck. Besides, the regulator will be carrying out close monitoring to ensure that the customers are compensated accordingly.
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