The critical decision made by the Japanese authorities to put on hold the running of two major cryptocurrency business exchange.
Apart from suspension ,the country agency that is entailed with the work of controlling the services in the country released a statement to newsrooms saying that it had commanded that the current performance licenses for the two companies to be terminated so as to ban all the activities carried out by the two entities.
The order as to take effect from the 8th of March 2018 till further notice that means they should await directions from the top that is the agency.
Also put on notice by the service agency are more than seven other exchanges which have been warned that if they don’t revisit and bring an improvement to the safety measures to protect their platform.
The entities are also required to present the steps taken in accordance with the financial service agency rules and regulations before the 22nd of March.
The 530million hacking theft that was reported to have taken place in a Tokyo based bitcoin trading exchange early in January this year.
Reports have indicated that around 58 billion yen in the system leaving over 300000 coincheck consumers with their highest financial loss ever experienced.
So the agency decided to put in place strict measure so as to protect the company’s money in the best way possible by protecting the investor’s rights and freedoms.
The agency raided coincheck offices before going forward to improve and check the security measures in other cryptocurrency trades across the nation.
In conclusion the financial service agency said that the safety process at the coincheck industry were not highly put into consideration and that they did not have qualified services in money laundering.
There was also suspicion that other trading’s too could be experiencing the same problems in prevention of a linked theft to the earlier one.
This worry made them to start scrutinizing more and more companies in order to confirm their doubts concerning the security problem.
History was made when the company was hacked as it remains the largest hack made to the cryptocurrencies history.
The Company promised to refund the affected victims at a later date which was not mentioned by the executive officer.at the end of their investigations they discovered that the entities they had earlier banned did not have process when it came to monitoring of trade.