Japanese Regulator set Final Reject to a Crypto Exchange

The Japanese Financial Services Agency (FSA) after approving 16 cryptocurrency exchanges, is stated to reject a crypto exchange application for the first time
06 June 2018   752

The applicant is an exchange that has been suspended for 2 times from carrying out any activities and gained 2 business improvement orders. 

The first time it has done so. The decision follows the ministry’s conclusion that Yokohama-based FSHO lacks the necessary systems to operate its business… By barring an exchange operator that it has found to be substandard, the agency aims to demonstrate its determination to re-establish a sound currency trading environment in Japan.
Nikkei Asian Review

FSHO is known as a “deemed dealer” or “quasi-operator” of cryptocurrencies in Japan, meaning it has been let processing a crypto exchange while its application with the FSA is being reviewed. In the March order, FSA suspended all of FSHO’s businesses towards cryptocurrencies from March 8 to April 7 and published the firm a business improvement order. According to it, the company was offered to correct 4 areas of operations such as to “Build a position to securely manage user information.” The measures taken were to be presented to the agency by March 22. In the April order, the agency again suspended all crypto operations of the company from April 8 to June 7 and issued another business improvement order.

This second order includes 5 business improvement areas, some of what were the same as those in the first order. Among new areas are the “Establishment of an effective management system including money laundering and terrorist financing” and a risk management system. The firm was to report the changes to the agency by May 7.

As reported by Nikkei Asian Review, the FSA found that "the exchange did not sufficiently verify the identity of customers in transactions where crime is suspected, or in cases where customer deposits may be diverted". The suspension period is to be completed on Thursday, after that the agency will block the exchange from operating and reject its registration.

Traders Personal Data to be Sold on the Darkweb

IDs of 1000 users of Bittrex, Poloniex, Bitfinex and Binance costs only $10
21 January 2019   81

A hacker under the pseudonym ExploitDOT is trying to sell data from users of the leading Bitcoin exchanges (Bittrex, Poloniex, Bitfinex and Binance), which they provided as part of the KYC procedure. It is noteworthy that a pack of hundreds of identity cards costs only $ 10, reports CCN.

ExploitDOT places its offers on the Dread darknet-marketplace. Moreover, an independent cybersecurity researcher who wished to remain anonymous, allegedly managed to get the real data of three users of the Binance exchange, pretending to be a buyer.

ExploitDOT even offers documents in bulk: up to $ 1 per 1000 copies, if the buyer places an order from 25 thousand.

Earlier, Cryptopia, a cryptocurrency exchange, has suspended work, informing users of “substantial losses” due to a security breach.