GMO Coin seeks to respond to Japanese regulatory action, files business improvement report

Maria Nikolova

Following a business improvement order issued earlier this month by the Kanto Local Finance Bureau, GMO Coin has submitted the required report.

GMO Coin, the virtual currency business of GMO Internet Inc. (TYO:9449), is seeking to comply with a business improvement order issued earlier this month by the Kanto Local Finance Bureau. The company published a brief update on its website today saying that it submitted a business improvement plan.

The plan concerns the establishment of an effective management system, as well as the creation of a contingency plan to be implemented in case of a system failure. The plan also includes improvements to the information security and cyber security systems of GMO Coin, as well as enhancements to the quality management and configuration management systems.

The Japanese regulator has voiced concerns about the system troubles occurring frequently as a result of the rapid expansion of the virtual currency exchange business. According to the regulator, the root cause analysis for these problems was inadequate and appropriate measures to avoid recurrence of the incidents were not taken. As a result, the regulator has instructed GMO Coin to establish an effective system risk management system. The company will also have to report progress and implementation status of this plan on a monthly basis.

Let’s recall that on January 4, 2018, clients of GMO Coin had some rough time, as they were unable to connect to the services for about five hours. GMO Coin did not specify the particular reason for the problems but said that it managed to restore the normal operations around 19:00 (local time) on the same day.

In the meantime, the social media channels of the company were flooded with angry comments of disgruntled traders.

The company reported similar issues in November. On November 13, 2017, its customers experienced problems with exchange rates and connecting to the platform. GMO Coin has dubbed the incident a “system failure” but did not provide any details on the cause for what had happened. The service was restored several hours later.

Read this next

Institutional FX

Malaysia’s exchange launches API for onboarding retail investors

“The Exchange actively listens to the evolving needs of our customers. This initiative is key in delivering on our commitment towards greater customer-centricity. We will continue to work closely with our POs and introduce service innovations to attract more investors, bolstering the competitiveness of our market.”

Fintech, Uncategorized

LiquidityBook welcomes JonesTrading to LBX Post-Trade Hub

“As we near the T+1 deadline, we are excited to continue helping firms achieve straight-through processing in addition to delivering new enhancements to our comprehensive range of cloud-native buy- and sell-side trading solutions.”

blockdag

Should I Invest Today? Which Altcoins Could Make 2-5X Profits Amid the Latest News?

Investing in cryptocurrencies can be a journey full of surprises, given their volatile nature.

Executive Moves

Bakkt promotes Ray Kamrath to CCO of Crypto

Bakkt has promoted Ray Kamrath to Chief Commercial Officer of the company providing custody, trading, and onramps to the crypto space.

Industry News, Uncategorized

HSBC relocates US headquarters to The Spiral, New York

HSBC has opened its new U.S. headquarters at The Spiral, a renowned office building in New York City’s Hudson Yards neighborhood.

blockdag

Best Cryptos to Buy Before the Real Bull Run Kicks Off

With the bull run of 2024 already underway, investors are eager to identify cryptocurrencies that promise significant growth.

Market News

This time is different – is it?

The stock market wants lower interest rates – or rather, it has been expecting them for months. Justified? The US economy looks very robust, so higher interest rates would actually be the order of the day.

Industry News

CFTC fines JP Morgan $200 million for not monitoring billions of orders

In 2021, in the course of onboarding a new trading exchange, J.P. Morgan discovered its surveillance of trading on multiple venues and trading systems was not operating correctly, resulting in gaps in J.P. Morgan’s trade surveillance on these venues.

Fintech, Payments

PayRetailers Expands in Brazil with Acquisition of Transfeera

PayRetailers strengthens its presence in Brazil by acquiring the payment institution Transfeera, aiming to enhance its technological capabilities and expand its customer base.

<