Even though the cryptocurrency market was finally starting to grow once again, Japan’s recent actions have influenced the market to take a nosedive. Japan punished seven cryptocurrency exchanges which caused all top cryptocurrencies to lose value as a result.
The reason why Japan is punishing the seven exchange platforms is because it wants to shore up consumer protections in light of the recent $530 million theft of altcoins from Coincheck.
Japan Punishes Seven Cryptocurrency Exchange Platforms
In case you didn’t know, Coincheck which is based in Tokyo lost $530 altcoins a while ago. This forced the Financial Services Agency to criticize the exchange platforms for not having proper security and control systems which need to protect consumers.
Moreover, the Financial Services Agency also decided to order those seven cryptocurrency exchanges to improve their overall security and to take better measures against hackers that might steal the consumer’s money.
Things don’t end here because the Agency is also asking the cryptocurrency exchanges to implement rules that reduce the criminal use of digital money.
Two Cryptocurrency Exchanges Stop Their Activity
The worst thing to come out of this is that Japan actually ordered two cryptocurrency exchanges to stop their activities for one month. The two exchange platforms in cause are called Bit Station and FSHO. As previously mentioned, these sanctions are taking a toll on the cryptocurrency market with Bitcoin falling 5.7% in value.
We should also mention that Coincheck which is one of the world’s biggest exchange platforms is being punished by Japan. In addition, this is not the first time that Coincheck receivesd a notice regarding security.
“We will carry out a far-reaching review of our internal control and management systems to ensure proper and reliable business operations from the viewpoint of customer protection” said the official spokesperson for Coincheck.