Japanese cryptocurrency exchanges are under a lot of scrutiny right now. Despite their self-regulation approach, local regulators will crack down on any dubious activity. GMO, one of the most recent companies to launch a trading platform, is taking this feedback to heart. Their new plan to improve security is a positive development overall.
For GMO, running a cryptocurrency exchanges makes a lot of sense. The internet giant has quite a loyal following in Japan as of right now. However, the exchange is also far from optimal. Japanese regulators made it clear the company needs to step up its game sooner rather than later. It seems that the feedback has been well-received by GMO Coin.
The Next Chapter for GMO Coin
The company submitted a new report to the financial regulator. It is a small step in the right direction. Trading platforms need to be monitored very strictly these days. They control users’ funds and are responsible for anything that happens to this money. For GMO, strengthening the information security management and audit functions is the top priority as of right now.
Their plan of action is simple yet effective. First of all, GMO Coin will protect information through highly secure countermeasures. Secondly, they will improve the quality of their security personnel associated with this venture. As the company was forced to improve, these decisions seem to check the right boxes. The earlier inspection in March highlighted some shortcomings by the exchange. It is evident local regulators don’t take kindly to any infringements in this regard.
For now, we have to wait and see how things unfold. The new business improvement plan will be thoroughly reviewed by the Japanese FSA. A final conclusion is expected around April 10th. There is no reason to think the company will need to shut down, for the time being. That situation can still change in the near future, though. GMO Coin will have to bring their A-game in this regard, that much is evident.
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