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.