According to the Nikkei report, two crypto exchanges are closed in Japan. And this is the result of increased control by the financial regulator of Japan after the infamous NEM theft of $ 530 million.
Tokyo GateWay and Mr. Exchange withdraw their applications for work as officially recognized exchanges in the Japan Financial Services Agency (FSA), the financial regulator of the country. Earlier this month, the FSA ordered both exchanges to improve their data security and general position on cybersecurity, which were recognized by the regulator as inappropriate standards.
According to the report,
BOTH OPERATORS WILL CLOSE THEIR BUSINESS AFTER THE ASSETS RETURN TO ITS CUSTOMERS
On March 8, FSA suspended operations of the FSHO and Bit Station exchanges, citing insufficient measures to ensure cybersecurity and money laundering.
Today’s report shows that three other unregistered exchanges – Raimu, bitExpress and temporarily suspended Bit Station – also withdrew their applications for registration with the FSA. Nikkei adds that the FSA expects further withdrawal of applications, which gives “several exchanges the chance to voluntarily close before ordering them to do so.”
The new law regulating cryptocurrencies
The new law, which entered into force in April 2017, in particular legally recognizing bitcoin as a payment method, decided that operators of crypto exchange must register with the FSA, adhering to guidelines and standards, in order to obtain a license for internal exchange transactions. Exceptions on a temporary basis were made for some exchanges that existed before the adoption of the new law.
Essentially, the FSA granted licenses to a total of sixteen operators of crypto exchanges that are already registered, and sixteen more exchanges were allowed to work while inspections are in progress.