After major cryptocurrency exchange Coincheck suffered massive losses to hackers last month, the government of Japan is set to introduce punitive measures to a few crypto exchanges as a push for greater investor security. Some exchanges might actually be forced to suspend business as a result, according to Reuters.
“The [Financial Services Administration] will mete out the punishments after uncovering flaws in customer protection and anti-money laundering measures during on-site checks at the exchanges,” Reuters reports. “After the Coincheck heist, the FSA said it would investigate all cryptocurrency exchanges for security gaps.
As a result of those checks the FSA will order some of the unregistered exchanges to halt their operations” Japan’s crackdown on cryptocurrency exchanges comes in the wake of several high profile hacks and data breaches. Coincheck, one of the largest cryptocurrency exchanges in Japan, lost an estimated $425 million in NEM tokens to hackers in January 2018.
The hackers accessed an unsecured “hot wallet” — a cryptocurrency wallet used to store funds for purchases or exchanges — and made a series of transfers before Coincheck caught on to the breach. “The exchange has promised to repay about $425 million of the cryptocurrency it lost in the theft.
Last month it said it has sufficient funds to make the repayments, but declined to specify when it would repay investors affected,” Reuters reports. In 2017 Japan became the first country to officially start regulating crypto exchanges at the national level. Read more from digitaltrends.com…
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