The Japanese financial controller has completed the on-site assessments of 23 cryptocurrency exchanges. The organization discovered numerous issues and has discharged a report regarding them. The controller will utilize the findings to fix its review procedures of new
cryptocurrency exchange candidates, including more than 100 organizations that have been waiting to be evaluated.
Japan's best financial controller, the Financial Services Agency (FSA),
declared the consequences of the on-site reviews of 23 cryptocurrency exchanges working in the nation, this Friday.
It was found that 7 out of these 23 are fully licensed crypto trades, rest being “deemed dealers”.
These exchanges are allowed to run while their applications are under continuous observation by the agency.
In January, the Coincheck was hacked which made these agencies suspicious and they started reviewing the exchanges.
Along with this announcement, the FSA also revealed a report that includes the problems that were
found from the monitoring of the exchanges.
Nikkei elaborated that the inspection reveals a disorganized reality that the maintenance of the internal system was not updated with the quickly changing transactions. The risks were left unevaluated for these virtual currencies.
Furthermore, the news outlet conveyed that the agency found certain facts. They found,
“the total assets of the exchanges rapidly expanded to more than 6 times in one year.” There are fewer than 20 executives at places, with assets under the custody of
“3.3 billion yen per person” on average.
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Here to read, Nikkei, three companies are under observation, including Coincheck.
