Saturday, 15 December 2018

Japan suspends two cryptocurrency exchanges in hopes of strengthening security

Japan’s crackdown comes after $530 million in NEM cryptocurrency was stolen

The Japanese government had said it would impose administrative measures on the virtual currency exchange after hackers stole hundreds of millions of dollars in digital assets from the firm.

Two cryptocurrency exchanges were temporarily suspended by a Japanese regulator Thursday as part of its effort for stronger security in the market after millions of dollars in digital currency was stolen earlier this year.

The FSHO and Bit Station exchanges were ordered by Japan’s Financial Services Agency to halt operations for one month, according to news reports. The regulator said one of Bit Station’s senior employees was found to have used a customers’ bitcoin for their own purposes, accourding to Reuters.

The crackdown comes after roughly $530 million in NEM cryptocurrency was stolen in mid-January from Coincheck Inc., a Tokyo-based cyptocurrency exchange.

The FSA on Thursday ordered Coincheck and four other exchanges to improve their business business practices, AFP reported. The regulator said Coincheck doesn’t have a sufficient internal control system to ward off risks such as money laundering and terrorism financing, reports said.

Coincheck in January said it would spend up to ¥46.3 billion ($436 million) to compensate customers whose digital currency was stolen.


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