With the Financial Services Agency implementing greater oversight in the wake of the ¥58 billion Coincheck heist, many young and small cryptocurrency exchanges are finding it difficult to conduct business and looking to call it quits.
In early March, the FSA rocked the cryptocurrency exchange world with a crackdown in response to the Coincheck incident that occurred in January, issuing administrative actions for seven firms, including the suspending of two: Kanagawa-based FSHO and Nagoya-based Bit Station.
Since the FSA issued the administrative orders, six exchange operators among 16 that were unregistered have expressed their intention to drop their applications to become registered exchanges.