Cryptocurrency News

Japanese Regulators increase inspections exchange houses

Nikkei, the Financial Services Agency (FSA) of Japan, announced through a recently published report that they are looking to inspect several exchange houses of cryptocurrencies in the Asian country starting this week. This decision was made after their visit to Coincheck in the days after the recent hack who left millionaire losses.

As it was announced in the news, more than $530 million dollars in NEM tokens were stolen on January 26 from the Exchange house called Coincheck.

On February 2nd, the FSA began with an inspection to measure the security and financial capacity of the platform and to find some way to compensate the victims who suffered large losses of money.

This last detail was made by Coincheck immediately after the attack as they promised to compensate all the affected users.

The agency began to press for the implementation and approval of new stronger security procedures when making cryptocurrencies transactions in this Asian country with the objective of offering more protection to Investors and prevent such attacks and intrusions from happening again.

The FSA has also commented in its report that it had already made several warnings to Coincheck about its failures in its security systems before the attack happened, which also explains why the house of exchanges has not yet obtained a formal approval from the agency.

Nikkei also explained that as the exchange business of cryptocurrencies is having significant growth in Japan, the exchange market also has a higher growth and many platforms have lagged behind in terms of security protection.

To finish off, the report indicated that among the 32 exchange houses of cryptocurrencies in the Japanese territory, Coincheck is currently one of 16 platforms that are not formally registered in the FSA because the operation began before the Cryptocurrencies law was approved back in April in the Asian country.

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