Japan Unveils Results of On-Site Inspections of 23 Crypto Exchanges

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The Japanese financial regulator has finished the on-site inspections of 23 cryptocurrency exchanges. The agency found many problems and has released a report outlining them. The regulator will use the findings to tighten its review procedures of new crypto exchange applicants, including over 100 companies that have been waiting to be reviewed. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Results of On-Site Inspections of 23 Exchanges Japan’s top financial regulator, the Financial Services Agency (FSA), announced Friday the results of the on-site inspections of 23 cryptocurrency exchanges operating in the country. Seven out of the 23 are fully licensed crypto exchanges; the rest are “deemed dealers,” which are exchanges that have been allowed to operate while their applications are being reviewed by the agency. The FSA started inspecting these exchanges after the hack of Coincheck in January. With the announcement, the FSA also released an interim report that outlines the problems found from the inspections and monitoring of the exchanges. Nikkei elaborated: The inspection reveals a sloppy reality that the maintenance of the internal control system has not kept up with the rapid expansion of transactions. The risk was not evaluated for each virtual currency…and it was judged that securing necessary personnel for countermeasures such as money laundering was insufficient at multiple vendors. Furthermore, the agency found that “the total assets of the exchanges rapidly expanded to more than 6 times in one year,” the news outlet conveyed. The FSA is also concerned that there are fewer than 20 executives…
Source: Japan Unveils Results of On-Site Inspections of 23 Crypto Exchanges

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