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Japan Reveals On-Site Inspection Results of 23 Cryptocurrency Exchanges


Japan Reveals On-Site Inspection Results of 23 Cryptocurrency Exchanges

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The Japanese financial controller has completed the on-site assessments of 23 cryptocurrency exchanges. The organization discovered numerous issues and has discharged a report regarding them. The controller will utilize the findings to fix its review procedures of new crypto exchange candidates, including more than 100 organizations that have been waiting to be evaluated.

Japan's best financial controller, the Financial Services Agency (FSA), declared the consequences of the on-site reviews of 23 cryptocurrency exchanges working in the nation, this Friday. It was found that 7 out of these 23 are fully licensed crypto trades, rest being “deemed dealers”.

These exchanges are allowed to run while their applications are under continuous observation by the agency.

In January, the Coincheck was hacked which made these agencies suspicious and they started reviewing the exchanges.

Along with this announcement, the FSA also revealed a report that includes the problems that were found from the monitoring of the exchanges.

Nikkei elaborated that the inspection reveals a disorganized reality that the maintenance of the internal system was not updated with the quickly changing transactions. The risks were left unevaluated for these virtual currencies.

Furthermore, the news outlet conveyed that the agency found certain facts. They found, “the total assets of the exchanges rapidly expanded to more than 6 times in one year.” There are fewer than 20 executives at places, with assets under the custody of “3.3 billion yen per person” on average.

According to Nikkei, three companies are under observation, including Coincheck. The publication stated that it is expected from the exchange registration to be resumed after the Coincheck incident. It was virtually stopped after the Coincheck’s incident. The observation in the future will be tightened and every step will be evaluated.

Currently, there are more than 100 organizations holding up to be registered. As indicated by Business Insider Japan, they incorporate megabanks, few IT organizations, and securities organizations. While some have just submitted applications to the FSA, a few have just experienced one consultation with the organization.

An FSA official told the production that he might want those wanting to be enlisted to look at the examination report and "first compare [the findings] with the situation of their company."

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