Japanese authorities could suspend some cryptocurrency exchanges

posted 17 days ago
Some of Japan's cryptocurrency exchange operators are about to be slapped with punitive measures by the Financial Services Agency, Nikkei learned on Wednesday.

An unspecified number of them are expected to receive business suspension orders.

The agency has been inspecting the exchanges since hackers made off with 58 billion yen ($550 million) worth of NEM coins from Coincheck, a popular exchange based in Tokyo.

The heist occurred on Jan. 26.

The FSA is moving against the exchanges for being lax in regard to protecting clients and watching out for money laundering.

In addition, the FSA is set to issue a second business improvement order to Coincheck. The agency will monitor any progress the operator makes toward compensating its clients for losses.

Coincheck suspended its operations the day of the hack. It has since returned any yen its customers were holding with it but has not reimbursed its clients for their cryptocurrency holdings.

The punitive action is expected to be announced by the end of the week.
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