Japan’s Financial Services Agency intensifies oversight in hopes the businesses will take stronger security measures for consumers’ protection. On-site inspections are planned for this week, as earlier operators were asked to report on asset management, corporate governance and security. However, many companies provided vague details on their business model or were found to have low security measures in terms of asset management.
Without the scrutiny of the regulator and also the lack of professionals in cybersecurity and internal auditing on the market may lead a slow pace of the improvement. Hopefully, the planned raids will make the necessary push for more security and stronger safety in the virtual currency industry. A reprimand will lead to disciplinary measures such as improvement orders
In the race for customers’ attention, many operators didn’t properly address the security consequences of such actions.Among the total 32 cryptocurrency exchanges, Coincheck is currently one of the 16 platforms that are not formally registered with the FSA because the operation started before the cryptocurrency law went into effect last April in Japan.