The FSA conducts a full inspection of 32 cryptocurrencies

nBankruptcy Commentary: Recently, the Japan Financial Services Agency (FSA) released a list of 32 cryptocurrencies in Japan and disclosed 16 additional cryptocurrencies that were submitted for review. In response to a previous incident of theft of Coincheck, the FSA conducted a site investigation on the exchange last Friday and demanded that all cryptographic currency exchanges in Japan conduct an internal self-examination based on the 43 items in the checklist.n
nTranslation: Clovern
Japan’s Financial Services Agency (FSA) announced that it is examining all 32 cryptocurrencies in Japan. These include 16 exchanges that are not licensed but are currently being audited by the agency, and exchanges that have been fully licensed.n
16 exchanges were fully licensedn
The FSA released a list of 32 cryptocurrencies in Japan last Friday, including 16 licensed exchanges and a further 16 exchanges that have submitted their applications for review.n

In September last year, the FSA approved for the first time license applications for 11 exchanges: Money Partners, Quoine, Bitflyer, Bit Bank, SBI Virtual Currencies, GMO Coin, Bittrade, Btcbox, Bitpoint, Fisco Virtual Currency and Zaif.n
Then in early December last year, another four companies were approved to operate Cryptocurrencies Exchanges: Tokyo Bitcoin Exchange, Bit Arg Exchange Tokyo, FTT Corporation and Xtheta Corporation. Bitocean, another exchange, was also approved by the end of December. At this point, a total of 16 Japanese companies are licensed to operate Cryptocurrencies Exchanges.n
Another 16 are under reviewn
Until last Friday, the FSA never disclosed the name of the company filing a license application and is reviewing it. The agency explained that in addition to the 16 exchanges listed above, the other 16 exchanges, which are not currently licensed, are classified as “digital asset exchange dealers” during the review period and include the country’s largest cryptocurrency Coincheck, one of the exchanges.n
The other 15 exchanges awaiting approval include: Minnano Bitcoin, Payward Japan, Lemuria Bitcoin Exchange (Bitcrements), Campfire Corporation, Tokyo Gateway, Lastroots Corporation, Debit, Eternal Link, FSHO Corporation, Kirin Corporation, Bit Station, Blue Dream Japan, Mr Exchange, Bmex Corporation, and Bitexpress Corporation.n
All exchanges are subject to reviewn
The agency announced that the list of all exchanges was mainly to deal with the theft of Coincheck last week worth 58 billion yen (about 530 million U.S. dollars) were stolen. Although the Exchange promised to use the exchange funds to compensate 260,000 affected clients for losses, no definite timetable for compensation has yet been provided.n

After the black exchange incident, the Financial Services Agency released a business rectification order to CoinCheck and requested it to submit a status report by February 13 to avoid a recurrence of similar problems afterwards. At the moment, according to a statement by the Japan Times to Taro Aso, finance minister, the FSA conducted an on-site investigation of the exchange last Friday to “effectively protect the interests of users.” The agency also plans to find out if Coincheck is financially viable Return customers.n
In addition, according to the Jiji Press, the FSA has ordered all cryptocurrencies in Japan to conduct internal self-examination based on the 43 items in the checklist. Exchanges need to submit reports of their risk management systems, such as detailed information on their response systems for managing customer assets and cyber attacks.n

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