Japan to Revise Exchanges Registration Rules

FSA "will strengthen the registration review" for companies that have submitted applications, but have not yet received approval
11 April 2018   637

The Financial Services Agency (FSA) of Japan has revised its rules and procedures for cryptocurrency exchanges registration. FSA "will strengthen the registration review" for companies that have submitted applications, but have not yet received approval. Companies whose applications are under consideration (they are called "quasi-operators") are still allowed to work. This is written by Bitcoin .com with reference to local media.

As for companies that have already passed the initial examination process, FSA, according to Sankei Shimbun, "will continue to work with them through on-site inspections."

As a result of the inspection, it is a policy [of the FSA] to strongly seek ‘withdrawal’ from exchange companies that do not show improvement, Sankei Shimbun reports

This process should help prevent the repetition of the situation with the hacking of Coincheck - the exchange in September last year filed an application for registration and worked as a "quasi-operator". A few days ago it became known that Coincheck was acquired by Monex Group.

FSA decided to go for tightening rules after having checked all quasi-operators and found a large number of exchanges with a lot of security violations. Subsequently, five companies withdrew their applications, and some exchanges were ordered to cease operations. In addition, according to the news agency Jili Press, on Friday FSA said that another exchange, Campfire, also "expressed a desire to withdraw the application for registration."

FSA also checked exchanges that are already registered, including Quoine, Tech Bureau and GMO Coin. Tech Bureau and GMO Coin received an order from FSA to improve business processes.

We mainly examine the system of protecting users, the auditing function, which we do not know by reporting alone, whether they are exercising corporate governance by properly separating management and execution.
 

FSA

At the moment more than 100 companies expect FSA to obtain a license for exchange-related activities. Among them, in particular, the company named Line Corporation, which owns one of the most popular messengers in the world - Line.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   70

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.