UNITED NEWS INTERNATIONAL (UNI) — Japan’s Financial Services Agency has ordered two bitcoin exchanges to suspend business for a month.
The exchanges are Bitstation and FSHO.
The agency said Thursday that a Bitstation employee used customer funds for personal transactions and that FSHO does not have proper systems to protect customers.
The regulator also imposed administrative penalties on five other bitcoin exchanges. They were found to have inadequate systems for customer protection and money-laundering prevention.
One of the five exchanges is Coincheck.
Coincheck lost an estimated US$530 million to hackers in January. The heist was the largest virtual currency theft on record.
After the theft, the Financial Services Agency conducted an emergency investigation that resulted in the latest sanctions.
Coindesk has until March 22 to report on how it will prevent money laundering and terrorism financing.