Japan is cracking down on exchanges amid illegal activity

Japan is cracking down on exchanges amid illegal activity

Japan is moving to crack down on cryptocurrency exchanges over what Reuters reports as a lack of “proper” internal control system as to mitigate risk and illegal activities. In addition, there’s pressure mounting to control the crypto’s populations for use in criminal activities. Specifically speaking, it’s use for funding terrorism and money laundering.

So, which ones are being targeted? Coincheck, which previously had $534 million in XEM currency stolen back in January, Bit Station and FSHO. Reuters says that there were seven total that are being punished. Coincheck in its part must submit a performance improvement plan by March 22nd. For Bit Station and FSHO, they’re ordered to stop conducting business entirely for a month.

Coincheck actually seems happy to comply with the government CEO Kiochiro Wada said that they current systems in place wouldn’t help the exchange in terms of being able to expand their business. Though, actions speak louder than just words, so it will be interesting to see how these Japanese crypto exchanges proceed with improvements.

Hamza Khalid

Hamza Khalid is the Lead Editor at The Jolt Journal. You're more than welcome to follow him on Twitter and follow The Jolt Journal on Twitter and Facebook. If you have any questions, concerns, or need to report something in this article, please send our team an email at [email protected]. This story may be updated at any time if new information surfaces.

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