Japanese financial regulator, the Financial Services Agency, has issued punishment notices to several cryptocurrency exchanges.
The FSA has been investigating exchanges since 534 million USD worth of cryptocurrency was stolen from Coincheck, a popular exchange, in January. This was the world’s biggest cryptocurrency theft at that point.
The first set of inspections is now complete. According to the report, the FSA has decided to dole out punishments as a result of lax security on the part of the exchanges in connection with customer protection and anti-money laundering measures.
The regulator is also going to issue a ‘business improvement order’ to Coincheck, and will be monitoring the progress of client compensation. The exchange has committed to repaying approximately 46.3 billion JPY to customers.
Japan recognised cryptocurrency as legal tender in April of last year, and introduced a cryptocurrency dealer licence after ruling that such entities must be regulated. Eleven firms were granted a Virtual Currency Exchange License in the first round of issue.
The theft from Coincheck was reportedly a result of NEM tokens being stored in a relatively basic wallet.
Source: Financial Magnates
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