The Japan authorities reached FSHO the cryptocurrency exchange provider and upon inspecting found several strange transactions. It was noted that FSHO had neglected several transactions within a short time during which the same investor converted a huge amount of cryptocurrency into cash.
Upon knowing this matter, the Financial Service Agency of Japan was concerned that the fund paved its way to malicious actors, decided to reject the plan of FSHO to become a registered entity.
The Financial Service Agency (FSA) is apparently monitoring crypto exchanges that provide unknown transactions or have low identity verification methods and preparing itself for the inspection. The inspection will be carried by the Financial Task Force (FATF). The news was revealed by Nikkie Asian Review on 22 May 2019.
In recent times, Japan has been upset over the money-laundering and hacking scams issues, due to the growing expansion of the cryptocurrency industry. To brief these issues, the FSA will organize a comprehensive inspection of anti-money laundering policies of Japan this year. The intergovernmental body will be looking over the inspection of anti-laundering protocols, and FSA is waiting for a better examination.
Issues to be highlighted at G20 Summit
Further, the issues will be addressed at the G20 summit that is scheduled to take place in June 2019. Apart from this, world leaders are hopeful of speaking over the international regulations for digital currencies. The G20 Summit Meet will be hosted by Japan.
South Korea and China are the two countries who have imposed a ban on initial coin offerings, Japan, however, still accepts regulated Initial Coin Offerings. Japan was the first country in 2017 that needed cryptocurrency exchanges to register with FSA.
Japan does not want to stay behind other nations in executing policies.
Japan wants to ensure that the financial security structure is under the working condition and so the FSA is targeting the crypto exchanges. The crypto exchanges are not completely verifying their clients’ details.
North Korea stole millions of cryptocurrency
Bitcoin is now ten years old, and from this time, the crypto value has been volatile. Security remains an important problem. More and more people are adopting bitcoin, and the cryptocurrency expansion is continuing across the world with this; there is also a rise in crypto hacks.
Recently, one of the leading cryptocurrency exchange Binance was hacked, crypto hackers managed to steal bitcoin of worth $41 million from its wallet and were one of the biggest hacks of the year.
While in March, this year, the expert panel issued a notice to the UN Security Council stating that North Korea used blockchain technology and carried cyber-hacks to steal cryptocurrency. The expert panel upon examining discovered that nearly $571 million amount was hacked and were successful in hacking crypto exchanges of Asia for almost five times.
The experts mentioned that the reason for North Korea to carry hack is to deal with the financial issues that are due to US economic sanctions.
The expert panel mentioned,
“Cyberattacks involving cryptocurrencies provide the Democratic People’s Republic of Korea with more ways to evade sanctions given that they are harder to trace, can be laundered many times, and are independent of government regulation,”