Japan has reprimanded seven Cryptocurrency exchanges and ordered suspension for two of them. This sincere effort has been attempted after the theft of $530 million at Coin check Inc. occurred. The Financial security service of Japan now wants to ensure complete protection and coverage of the consumers.
Previously, the Financial Services Agency rebuked the Crypto exchanges for not possessing a controlled system and strictly ordered the firms to make amendments in order to prevent the misuse of Virtual money. Coincheck, one of the leading exchanges of Japan, was given a formal warning since it is a considerable target. Bit Station and FSHO have been asked to suspend their operations for a month.
The concern of the Japanese Government pertains to the areas having flaws. The security system is considered to be one such zone which needs immediate development. Coincheck has been criticized for not owning an efficient system which can control the chances of money laundering and Cyber theft. The exchange has been given a few weeks notice to submit reports regarding the final prospect of the improvements. Coincheck will thereby, have a press conference at 0700 GMT.
“We will carry out a far-reaching review of our internal control and management systems to ensure proper and reliable business operations from the viewpoint of customer protection,” the members of the company said.
Repeatedly, the Japanese exchanges are facing criticism from lawmakers and business men. Last year, Japan became the first country to regulate crypto exchanges. This sudden discovery of technical glitch and loopholes in the Digital platform has slowed down the expansion of the tech-world but the regulations and improved security system are indeed very essential to have a strong foundation for the rising sector.