The Financial Services Agency released its 2024 Monitoring Report, urging improved internal audits and closer scrutiny of cryptocurrency exchanges.

Japan's financial regulator has called for stronger internal audits across the entire financial sector, highlighting the need for better oversight, especially for cryptocurrency exchanges.

On December 26th press releaseThe Financial Services Agency said it plans to update its “current situation and issues” guidance, providing new audit procedures to align with international trends. As part of its efforts to strengthen audit standards, the FSA will also hold a “Roundtable on Improving Internal Audit Processes in Financial Institutions” in late January 2025.

In the press release, the financial watchdog revealed that the roundtable will include representatives from the banking sector and the Japan Cryptocurrency Exchange Association, which includes members such as bitFlyer and Coincheck. No further details were shared, however.

The latest initiative also comes shortly after the Japanese police open Hackers affiliated with the North Korean regime were likely behind the $307 million attack on Japanese cryptocurrency exchange DMM Bitcoin.

In a press release dated December 23, the FBI, along with Japan's National Police Agency, revealed that the hack, which occurred in May, was linked to North Korean cyber actors and linked to the threat group known as TraderTraitor, also referred to as Jade Sleet and UNC4899. And Slow Pisces.