Japan has been one of the top countries that lead innovation and technological integration in their lives. Today, they managed to punish crypto exchanges due to local regulatory lapses. Furthermore, 7 are looking to face legal punishment, while 2 were effectively shut down.
Cryptocurrency and Japan have been one of the best combos in the market as lesser and stricter regulatory laws. This time, the country is looking to criticize and have an effective crackdown on some of the exchange companies and their overall system.
Reports revealed that Japan’s Financial Services Agency is looking to head the overall crackdown operations. The FSA is going to order and rule out improvements for the exchange as they’ll be focusing on a better risk management platform.
The agency is looking for stricter and improved exchange companies as cryptocurrencies are often tagged with illegal activities such as money laundering. The Japanese crackdown sends Bitcoin prices and other alternative coins down in the market.
Coincheck recently took the headlines as they freeze all withdrawal as a heist was reported. The coin exchange company suffered a whopping $723 million robbery in their wallet. The digital heist drove crypto prices down and made Japan look over this kind of businesses.
Furthermore, the FSA is looking to give Coincheck until the end of the month to submit their report on how they plan on improving their system.
The agency noted that the company is lacking the right measures and system to counter the risk of money laundering and even terrorism financing.
According to reports, the exchange company is looking to repay the whopping 46 billion yen or $434 million to their investors that lost their money from the heist this week. The company also announced several changes to their crypto trading policies.
Other Crypto Exchange in Japan
Meanwhile, Bit Station and FSHO are sentenced and ordered to halt their operations for at least a month. FSA has been tightening its security and safety regarding this digital coin exchanges as numerous heist was reported this year.
Bitcoin Prices After FSA Regulation
The whole cryptocurrency market was struck on the recent regulation changes in Japan; Bitcoin fell to relative levels as the news broke. The digital currency fell as much as 5.7% in the market before easing and recuperating a total of 2% at $10,124.
The crypto’s price was relatively lower this year as opposed to its 2017’s prices. Bitcoin prices managed to hit an all-time high of about $19,458 last December. Now, numerous regulations and legal discussion have dragged the prices down.
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