Japan: Operator Of GMO Exchange Promises To Improve Data Security After Regulator Order


GMO Internet, which operates the Japanese crypto exchange GMO Coin, recently announced plans to establish a “Group Information Security Audit Office”. The move is aimed at developing stronger security programs and measures to protect customers’ information.

GMO Coin was among the crypto exchanges which were issued with a business improvement order by the country’s Financial Services Agency (FSA) following several on-site inspections which were prompted by the hack of crypto exchange Coincheck in January.

The new group by GMO Internet and which is ran by knowledgeable and experienced security expert Takeshi Miyazaki, will have an external advisor on security matters as well. The formation of this group is aimed at safeguarding crucial customer information from increasingly sophisticated and complicated cyber-attacks. The group has highly secured pursue and countermeasures designed to improve group information security literacy as well as foster security personnel.

Just a week ago, on March 22, GMO Coin, through a post on their website said that they had already submitted the business improvement plan which had been requested by the Financial Services Agency to the Kanto Local Finance Bureau.

GMO Coin added that it regrets any inconvenience that its customers as well as stakeholders may have experienced. They added that they are taking the government’s punishment very seriously and working on improving their risk management programs and systems. GMO Coin said they are doing this by implementing an improvement plan so as to offer services to customers in a way that makes them feel safe and secure.

GMO Internet is also engaged in crypto mining. In September last year, it announced that they planned to take over 6 percent of the Bitcoin (BTC) mining market in 2018.

Due to stricter regulatory supervision being developed in Japan, two crypto exchanges recently decided to close down earlier this week opting not to work with regulators for compliance. Binance, a Crypto exchange has also moved its businesses and services away from Japan. It has since announced setting up a new office in Malta. It took the decision after being issued with a warning by the Financial Services Agency about the exchange’s unregistered status.