The crackdown on the Japanese cryptocurrency industry intensified Thursday as operations at two exchanges were suspended and troubled Coincheck Inc. was ordered to "conduct a drastic review on its management team."
The Financial Services Agency's move, which also affected four other firms, highlights the rising pressure on domestic virtual-currency exchanges to strengthen security and consumer protection in light of the Coincheck hack, which cost the Tokyo-based startup ¥58 billion worth of NEM coins.
Kanagawa-based Fsho and Nagoya-based Bit Station were ordered to halt exchange services until April 7.
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