The Financial Regulator of Japan Suspended the Work of Two Crypto Exchanges

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After checking trading platforms, the Japan Financial Services Authority imposed sanctions on 3 cryptocurrency exchanges: FSHO, Eternal Link and Lastroots. The reason for such sanctions, according to the regulator, are insufficient measures taken to prevent money laundering and the risks associated with the security system.

As reported by Reuters, two of them – exchanges Eternal Link and FSHO were banned from conducting operations for two months.

Crypto exchange Lastroots will need to improve their practices. Full results about the investigations conducted by the FSA, the Minister of Finance promised to provide in the near future.

By the way, the regulator of Japan suspended the work of the FSHO exchange for the first time. In March, FSA suspended the FSHO and Nagoya-based Bit Station. According to the Japanese press, Bit Station was fined, because its senior officials were implicated in the theft of client’s cryptocurrency deposits. As a result, the accusations led to the arrest of four high-ranking representatives of two crypto- exchanges in South Korea.

FSA announced its intention to check all crypto-trading platforms in February 2018. It also failed to bypass the 16 exchanges that had not yet been registered at the time of the regulator’s announcement. As a result, out of 32 audited exchanges, only half of them received licenses to provide cryptocurrency exchange services.

The financial regulator of Japan made a decision to inspect all the country’s crypto exchange after the attack on Coincheck in January. Then about 550 million US dollars were stolen in the NEM cryptocurrency. This case was named one of the largest in the history of the cryptocurrency.

The Japanese authorities decided to create an authority to combat cybercrime. The unit was joined by 500 analysts and investigators from various branches of law enforcement agencies of the country.

Earlier this week, news appeared that Tokyo Monex Group was considering buying Coincheck. On Friday, a deal was confirmed with an online broker. The team behind the hacked stock exchange accepted an application for a purchase amounting to 3.6 billion Japanese yen (~ 33.6 million US dollars).

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