Exchanges Closing Up Shop

 In News

Two exchanges based out of Japan are set to cease operations after the 500 million dollar theft that took place. Regulators are cracking down.

Both Mr. Exchange and Tokyo GateWay are withdrawing applications with Japan’s Financial Services Agency (FSA). The applications were to serve customers.

No official statements have been published but Mr. Exchange posted on March 8 that it had received an order requiring it to beef up security due to the Coincheck hack. If you don’t remember that one, $533 million worth of the cryptocurrency NEM token was taken.

Closers reportedly will not happen until all funds have been withdrawn or returned.

This development is notable as earlier this month, Japanese regulators suspended two cryptocurrency exchanges, FSHO and Bit Station due to security flaws.

Exchanges in Japan are required to register with the FSA. That law went into effect last march. While a number of exchanges have received licenses to date, the FSA has stepped up its oversight of the industry in the wake of the Coincheck hack.

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