Japanese Regulator to Inspect All Country’s Unlicensed Exchanges
February 18, 2018
Japan authorities have declared, 15 local cryptocurrency exchanges with no license will be subject to thorough inspection in view of recent Coincheck hack.
As the country’s Minister of Finance Taro Aso put it, these inspections will be of on-site character, i.e. will take place in the premises of the exchanges. They are going to examine only the exchanges with license application not approved yet.
The Minister of Finance has claimed, security practice and investors’ funds management are to be tested in the course of the inspections.
Let us remind you that Japan Financial Services Agency (FSA) has announced the upcoming monitoring measures of all local cryptocurrency exchanges at the end of January. The exchanges were required to take all necessary security measures and submit a report. After assessing the reports filed the FSA concluded, all unlicensed exchanges need on-site inspections.
It is to be noted that licensing procedures for cryptocurrency exchanges in Japan started in April 2017 when cryptocurrencies were recognized legal payment means across the country. Remarkable enough, the infamous Coincheck was not approved by the FSA yet permitted to continue activity along with inspections.
As reported earlier, Japan authorities demanded Coincheck to hold domestic investigation for detecting vulnerabilities which allowed for hackers to steal the funds and provide a report on the results. As the FSA claimed later, the hack was caused by poor system risks management which turned to be a common case for Coincheck.