Japanese exchange clampdown kicks in, cryptocurrencies fall

Seven exchanges in Japan have been affected by a new clampdown from the country’s Financial Services Agency.

Japan continues to turn the screw a little on the cryptocurrency sector, with news coming through this morning of further clampdowns on exchanges in the country.

The Japanese Financial Services Agency has come down on seven different exchanges, outright suspending business at two of them. This is in relation to continued concerns over consumer protection, as the ramifications in particular of the high-profile theft from the Coincheck exchange continue.

Operations have thus been suspended at Bit Station and FSHO for the period of one month, effective immediately. In the case of the former, this is reportedly due to one of its employees utilising clients’ digital currency for personal use. FSHO, meanwhile, has been criticised for not having systems in place to properly monitor trading, and for deficiencies in its staff training.

The other five exchanges affected include Coincheck, and they’ve each been ordered to improve their business practices. It’s understood that Coincheck specifically has not yet reimbursed all of its customers for the $400m that was stolen by hackers from the wallets.

The clampdown comes on the day that the SEC in the US issued warnings on unregulated crypto exchanges. You can read more about that story here. The net effect has been a fall in cryptocurrencies overnight, after what’s been a bumpy 24 hours.

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