Two Japanese Crypto Exchanges Shut Down – Why?


In the latest news, two Japanese crypto exchanges shut down. Before shutting down, the two Japanese exchanges were attempting to secure a license as part of the regulatory framework introduced by  the FSA in April 2017.

30 March, AtoZForex The Japanese financial regulator, the Financial Services Authority (FSA) has appeared to have the impact on the country’s cryptocurrency exchange sectors, as two operators announce that they are shutting down, according to the local media reports.

Two Japanese Crypto Exchanges Shut Down – Why?

Two Japan-based exchanges, namely Mr. Exchange and Tokyo GateWay are set to stop trading once they finished returning returning customer funds. In fact, several Japanese operators have decided to cease services provision to the Japanese market as a result of the heightened regulatory scrutiny in Japan.

Before shutting down, the two Japanese exchanges were attempting to secure a license as part of the regulatory framework introduced by FSA in April 2017. In its blog post, Tokyo Gateway has written:

“While this is a regrettable result, at present we have determined that it is difficult to be in a state of readiness to be able to respond to changes in the virtual currency landscape, so we decided to withdraw the application for a virtual currency exchange business.”

The website of this company is currently offline, while there is also no official confirmation of the local media reports.

FSA Japan Regulatory Scrutiny

In the meantime, the Japanese FCA has continued to closely monitor domestic digital currency exchanges, as it also pushed 16 exchanges to obtain a license starting from the introduction of the scheme. At the beginning of this month, the financial regulatory body in Japan have ordered a month-long suspension for two of the local cryptocurrency exchanges. The exchanges that have received the orders are the FSHO and Bit Station.

The Japanese regulator has also ordered other trading platforms, including Coincheck, to improve their system security measures. The exchanges had to submit a written improvement plan by the 22 of March.

Earlier this year, the cryptocurrency exchange CoinCheck has experienced a cryptocurrency theft. The $530M Coincheck cryptocurrency theft was one of the biggest cybersecurity hacks in history. The theft also points out the vulnerabilities in trading that global authorities are trying to get hold of. The hack also highlights the wider risks for Japan as it looks into leveraging the fintech industry to boost the economic growth.

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment