The Financial Services Agency (FSA) of Japan has released its monitoring report for 2024, calling for enhanced internal audits within the country’s financial sector, with a particular emphasis on crypto exchanges. Highlighting the need for improved oversight, the FSA stated its intention to update its “Current Situation and Issues” guidelines, introducing new auditing measures to align with international standards.
In an announcement made on December 26, the FSA outlined plans to conduct a “Roundtable on the Improvement of Internal Audits at Financial Institutions” in late January 2025. This event will include representatives from the banking sector and the Japan Cryptocurrency Exchange Association, which features members like bitFlyer and Coincheck. Further details regarding the roundtable have yet to be disclosed.
This push for stronger internal audits comes after Japanese authorities reported a major hacking incident involving $307 million stolen from the crypto exchange DMM Bitcoin. The attackers have been linked to North Korean cyber actors associated with the threat group known as TraderTraitor, also referred to as Jade Sleet, UNC4899, and Slow Pisces, according to an announcement made on December 23 by Japan’s National Police Agency and the Federal Bureau of Investigation.
The FSA’s actions reflect a broader initiative to enhance the security and integrity of Japan’s financial ecosystem amid growing cyber threats and increasing global scrutiny of the cryptocurrency industry.
