Japanese regulators on Thursday pointed punishment notices to several cryptocurrency exchanges and forced others to put an end business, in an effort to shore up consumer protection after the $530 million rip-off of digital money from Tokyo-based bitcoin exchange Coincheck.
A older official at the Financial Services Agency told reporters at a briefing on Thursday it had established Coincheck had funding to reimburse its customers for digital NEM coins stolen from its altercation. It said the company would announce details of its reimbursement plan later in the day.
The regulator effected business improvement orders to Coincheck and six other exchanges, saying the seven barters lacked the proper and required internal control systems.
It ordered the disbarment of operations at two of them, Bit Station and FSHO, for one month starting Thursday.
FSA disclosed a senior employee at Bit Station was found to have used customers’ bitcoin for the herself’s own purposes. The agency said the exchange, which has been allowed to perform on a provisional basis, dropped its application to become an authorised exchange.
The FSA bring up Coincheck lacked a proper internal control system for risks such as take laundering and terrorism financing.