All cryptocurrency exchanges ordered to report management systems

February 3, 2018

Tokyo- Japan's Financial Services Agency has ordered all cryptocurrency exchanges in the country to submit self-inspection reports based on a checklist of 43 items, including their business management systems, Jiji Press learned Friday.

The FSA issued the order in the wake of a high-profile theft of 58 billion yen in cryptocurrency from Japanese virtual currency exchange operator Coincheck Inc. in a hacking incident last week.

The 43 items also include details of their systems to manage customer assets and measures to counter cyberattacks, informed sources said.

Coincheck is found to have poor security measures against cyberattacks and hacking. It was managing cryptocurrency assets of its customers using a system connected to the Internet.

Believing that the poor risk management practice has led to the massive heist, the FSA apparently sees the need to carry out thorough investigations into all cryptocurrency exchange operators in the country.

After analyzing the reports from the exchanges, the FSA will decide whether to conduct on-site inspections, the sources said.

Subject to the thorough checks are 16 exchanges registered with the FSA and 15 other exchanges currently undergoing registration screening processes, excluding Coincheck. All these exchanges were told to submit their reports by Friday. Jiji Press