Two Japanese Exchanges To Be Closed

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Two Japanese Exchanges To Be Closed

Two cryptocurrency exchanges in Japan are reportedly set to cease operating amid growing scrutiny from regulators in the wake of a $500 million theft.

The two exchanges- Mr. Exchange and Tokyo GateWay – are withdrawing previously filed applications with Japan’s Financial Services Agency (FSA).

As of press time no official statements have been published by either exchange, though on 8 March Mr. Exchange posted it had received an order requiring it to beef up its internal protocols in the wake of the attack in late January. The incident resulted in approximately $533 million worth of the cryptocurrency NEM token being stolen.

Per Nikkei’s report, the closures won’t occur until user funds have been withdrawn or otherwise returned.

Earlier this month, Japanese regulators suspended two cryptocurrency exchanges, FSHO and Bit Station, citing security flaws. The Nikkei reports, that Bit Station has withdrawn its application with the agency.

“More are expected to follow, as the FSA has given several exchanges a chance voluntarily close before ordering them to do so,” the news service added.

The Japanese exchanges are required to register with the FSA. While a number of exchanges have received licenses on time, the agency  stepped up out of the industry in the wake of the Coincheck hack.

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