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Japan To Expand Cryptocurrency Exchange Probe


Japanese regulators plan to raid more cryptocurrency exchanges operating in the country as early as this week after the massive hack of Coincheck venue.

The Financial Services Authority is planning on-site inspections on cryptocurrency exchange operators this week and may expand its probe to others, Reuters reported citing a source close to the matter.

The country has several cryptocurrency exchanges, of which 16 are licensed under a law implemented in April 2017.

On January 26, it emerged that 523 million NEM coins worth 58 billion yen or $531 million were stolen from Coincheck, a leading cryptocurrency exchange.

Coincheck said it will repay the nearly 260,000 affected users in Japanese yen.

The FSA ordered Coincheck to study the security flaws and beef up its protective measures, and report back by February 13.

The agency also conducted a surprise raid on Coincheck early this month.

Other cryptocurrency exchanges were also asked to report on systems including asset management, corporate governance and security, the Nikkei Asian Review said.

The watchdog is considering disciplinary measures including improvement orders for cryptocurrency exchanges whose systems are found to be lacking.

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