Two other Japanese cryptocurrency exchanges are closing their doors after their operators allegedly withdrew their applications with the country’s Financial Service Agency. Hence, they are in the process of reverting client’s cash and crypto holdings.
Tokyo Gateway and Mr. Exchange is closing down their operations
As the regulations are severe in Japan, two additional cryptocurrency exchanges are ceasing their operation, making a total of five cryptocurrency exchanges closing so far.
Nikkei Asian Review reported that both Tokyo GateWay and Fukuaka-based Mr. Exchange are ordered by Japan’s Financial Service Agency (FSA) to make significant enhancements to their data security. Further, they also enforced to expand various other security fortifications which found to be deficient.
Instead of following the guidelines, both exchanges have withdrawn their applications to lawfully function as an exchange. They are set to return both their client’s cash and digital currencies.
Tokyo Gateway and Mr. Exchange have now joined along with other three exchanges Riamu, bitExpress, and Bit Station to cease operations, following the regulations which force Japanese cryptocurrency exchanges to register with FSA.
The Nikkei Asian Review that
“More are expected to follow, as the FSA has given several exchanges a chance voluntarily close before ordering them to do so.”
Presently, 16 cryptocurrency exchanges are under review with Japan’s Financial Service Agency.
All the five exchanges were associates of a group of companies which applied for registration. They can still operate because thier applications are pending. Among the 16 cryptocurrency exchange, Coincheck is one which suffered a massive hack of $530 million in the month of January.
After the Coincheck destruction, Japan’s FSA inspected each and every unregistered cryptocurrency exchanges applying for acceptance. Authorities investigated based on a business’ data security, requiring them to achieve the principles set by the 16 exchanges already registered.
The news outlet wrote:
“The FSA’s probes have so far found problems with corporate governance and internal controls. Some operators see little prospect of meeting the agency’s standards.”
Last week, the famous cryptocurrency exchange by 24-hour trading volume, Binance was issued a notice by the FSA. Currently, Binance which is originally based in Hong Kong is now mulling to relocate to Malta. Although, it says it is also functioning with Japanese regulators to remedy its situation.