Japan: Two Exchanges Announce Closure, Rather Than Comply With New Regulations

Regulatory agencies across the globe continue to ramp up pressures on cryptocurrencies and the businesses that are closely tied to them. Case in point, two Japan crypto exchange closures.

Two Japanese exchanges, Mr. Exchange and Tokyo GateWay, will cease trading once they have returned customer funds, according to Nikkei.

The news comes as a financial regulator, the Financial Services Authority (FSA) challenges exchanges to prove their security credentials in the wake of Coincheck’s $530 mln hack in January.

As a result of FSA inspections and requests, several operators have opted to stop servicing the Japanese market. Prior to their closure, Mr. Exchange, and Tokyo GateWay were both in the process of securing a license as part of a scheme introduced by Japan in April 2017.

In a blog post, March 29, the former confirmed it had withdrawn its application:

“While this is a regrettable result, at present we have determined that it is difficult to be in a state of readiness to be able to respond to changes in the virtual currency landscape, so we decided to withdraw the application for a virtual currency exchange business.”

Tokyo GateWay’s website is currently offline, with no official correspondence available to confirm the Nikkei report. The FSA meanwhile continues to drip-feed new market players to Japanese consumers, with 16 exchanges obtaining a license since the scheme opened.

This week, internet giant Yahoo! announced it would seek to launch its own operation by April 2019.