2 crypto exchange firms face suspension

April 7, 2018

Tokyo- Japan's Financial Services Agency on Friday slapped two-month business suspension orders on cryptocurrency exchange operators FSHO and Eternal Link due to problems in customer asset management or measures against money laundering.

The financial regulator issued business improvement orders to FSHO, based in Yokohama, the capital of the eastern Japan prefecture of Kanagawa, Eternal Link, based in Tokyo, and LastRoots, also a Tokyo-based cryptocurrency exchange operator.

The massive theft of customer assets held in cryptocurrency NEM from Tokyo-based Coincheck Inc. in late January prompted the FSA to launch at the start of February inspections of some registered operators and all 16 operators being screened for registration under the revised payment services law, which went into force in April 2017.

FSHO, Eternal Link and LastRoots are among the 16 operators.

The latest move came after the FSA took measures such as business improvement orders against FSHO and six other operators on March 8. Jiji Press