The Japan’s financial regulation board on Thursday punished seven cryptocurrency exchanges, suspending business at the two of them, in an effort to shore up consumer protection after the $530 million theft of digital money from Tokyo-based Coincheck.
In a press briefing of a senior official at the Financial Services Agency, he confirmed Coincheck had funding to reimburse its customers for digital NEM coins stolen from its exchange.
Meanwhile, the said company would announce details of its reimbursement plan later in the day.
The regulator issued business improvement orders to Coincheck and six other exchanges, saying the seven exchanges lacked the proper and required internal control systems.
Furthermore, Japan financial board ordered the suspension of operations at two of them, Bit Station and FSHO, for one month starting Thursday.
FSA said a senior employee at Bit Station was found to have used customers’ bitcoin for the person’s own purposes.
The agency said the exchange, which has been allowed to operate on a provisional basis, dropped its application to become an authorized exchange.
As of writing, Bit Station, FSHO and Coincheck has not respond for comment over the order.