Two cryptocurrency exchanges will be closed in Japan

Two cryptocurrency exchanges will be closed in Japan

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The Financial Services Agency (FSA) has strengthened the supervision of the local crypto-industry, as a result of which two crypto-exchanges may soon be closed in the country. This is written by Nikkei.

Mr.Exchange and Tokyo GateWay exchanges withdrew their applications for registration with FSA, which was necessary to provide exchange services to local customers.

None of the exchanges has yet published an official statement about what is happening. On March 8, Mr. Exchange reported that they received an order demanding to strengthen their internal security protocols in connection with the attack on Coincheck in late January, which resulted in the stolen NEM tokens worth about $500 million.

According to Nikkei, the exchanges will be able to exit the business only after customers receive all their funds – both in cryptocurrencies and in fiat money.

In early March, Japanese regulators, citing weaknesses in the security system, suspended the operation of two crypto-exchanges – FSHO and Bit Station. The latter, as Nikkei writes, withdrew its application for registration, like the other two: Raimu and bitExpress.

“This list will grow, because FSA has already given several exchanges a chance to voluntarily close before the department orders them to do so,” the Nikkei article says.

According to the law adopted in March last year, all Japanese exchanges must be registered with the FSA. Although by now many exchanges have already received the appropriate license, FSA has nevertheless strengthened the supervision of the crypto-industry in connection with the breaking of Coincheck.

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