The Financial Services Agency has released its 2024 monitoring report, calling for better internal audits and closer scrutiny of crypto exchanges.
Japan’s financial regulator has called for stricter internal audits across the financial sector, highlighting the need for better oversight, particularly for crypto exchanges.
In a press release on December 26, the Financial Services Agency said it plans to update its guidelines on the “current situation and issues” and introduce new audit measures to align with international trends. As part of its efforts to improve auditing standards, the FSA will also hold a “Roundtable on Improving Internal Auditing at Financial Institutions” in late January 2025.
In the press release, the FSA announced that the roundtable will include representatives from the banking sector and the Japan Cryptocurrency Exchange Association, which includes members such as bitFlyer and Coincheck. However, no further details were revealed.
The latest initiative also comes shortly after Japanese police revealed that hackers linked to the North Korean regime were likely behind the $307 million attack on Japanese crypto exchange DMM Bitcoin.
In a press release on December 23, the Federal Bureau of Investigation, together with Japan’s National Police Agency, revealed that the hack, which took place in May, was linked to North Korean cyber actors and was linked to the threat group TraderTraitor, also known as TraderTraitor Jade Sleet, UNC4899 and Slow Pisces.
