Japan’s Government To Inspect 15 Crypto Exchanges

The inspections will take place at 15 unlicensed cryptocurrency exchanges in light of a recent major hack  
16 February 2018   1048

According to the Japan Times, Japan’s financial services minister Taro Aso said that on-site inspections will take place at the crypto exchanges that have filed for licenses but have not yet been approved.

This move comes after the last month hack at Tokyo-based digital currency exchange Coincheck.

During a news conference, Taro Aso stated that the inspections will focus on the exchanges computer system safety measures and how they manage customer assets. He also informed that 5 out 15 of exchanges are already informed of the upcoming inspections.

Following the Coincheck hack, the Financial Services Agency (FSA) ordered all licensed and unlicensed exchanges to report on their safety measures. After studying reports, FSA stated that it is necessary to inspect 15 unlicensed cryptocurrency exchanges.

A registration system for digital currency exchanges was introduced by the government in April 2017. It is worth noting that cryptocurrency exchanges that were in operation before the revised law went into effect, but have yet to be registered, are provisionally allowed to conduct their business during the registration process. Prior to Coincheck’s hack, the exchange was also permitted to operate.

Mt. Gox CEO to be Found Guilty of Falsifying Docs

Mark Karpeles has a suspended term of four years ahead to prove his reliability and to avoid a real imprisonment
15 March 2019   120

The Tokyo District Court convicted the former CEO of the Mt.Gox bitcoin exchange, Mark Karpeles, of falsifying documents and sentenced him to two years and six months in prison. Nevertheless, Karpeles has a suspended term of four years ahead to prove his reliability and to avoid a real imprisonment. Reported by The Block.

Note that the prosecutor's office demanded 10 years in prison, however, on charges of embezzlement and violation of corporate law, Karpeles was found not guilty.

Karpeles and his lawyers intend to assess the situation and develop a strategy for action on the charges.

Earlier, the Illinois court rejected the petition of the lawyers of the former head of Mt.Gox to suspend the proceedings against him in the United States. So, American investors Gregory Green and Anthony Motto demand that Carpeles be personally responsible for the loss of their investments.

Once the largest Bitcoin exchange Mt. Gox crashed in early 2014. This happened after the information appeared about its alleged hacking and theft of 800,000 BTC ($ 480 million at that time). In December last year, Carpeles, during his closing speech at a Tokyo court, called himself innocent of the events that caused the millions of client losses and the company's collapse.