![]() ![]() The agency is getting ready to penalize Coincheck in relation to the hack, the Yomiuri newspaper reported on Sunday without saying where it obtained the information. It was allowed to continue operating while awaiting a decision from the Financial Services Agency. Multiple phone calls placed to two different numbers went straight to voice mail.Ĭoincheck was four months past its deadline for receiving a license necessary to operate, as part of Japan’s new legislature to vet and audit cryptocurrency exchanges. On Wednesday, Line Corp, known for its massively popular Line messaging app, said it has applied to the FSA to launch its own cryptocurrency exchange.Coincheck didn’t respond to an email requesting more information and verification of the authenticity of the statement. Regulatory issues and thefts haven't put off other players in Japan's virtual currency market. And no one is sure what's the best way for this." ![]() "Japanese regulators should have had heavier regulations but to do so they would need to have 100 percent clarity about what measures are needed. "Japan regulators should regulate these exchanges the same as banks" to ensure they're properly capitalized, Hikaru Kusaka, cofounder of Estonia-based blockchain developer Blockhive, told journalists in Tokyo on Thursday. He added that in the Mt.Gox, case the company's money and users' cryptocurrency were not segregated, so now current regulations requires this, but they still don't specify how much cryptocurrency must be in offline wallets for security. "Innovation is too fast for (the FSA) and they cannot understand what, let's say, a token is, and what's the real function of the blockchain and what is a cold wallet and a hot wallet…at the beginning of last year, their knowledge was very limited," said Kawai. But he also pointed to a lack of cryptocurrency expertise at the FSA and the fact that it has to struggle to recruit skilled professionals on limited government salaries. Ken Kawai, a partner at Anderson, Mori & Tomotsune in Tokyo who has advised financial organizations and startups about fintech, told reporters Coincheck was allowed to operate as an exchange while its application for a license was still pending. While 16 cyrptocurrency exchanges have been registered in Japan, Coincheck was not one of them. Japan has seen its share of global crypto trading rise following restrictions in China and South Korea. As long as those funds are off public exchanges they will be very difficult to liquidate, especially in large amounts." The foundation has called on the cryptocurrency community to take proper security measures such as hardware wallets and multifactor authentication. The NEM Foundation, the organization behind NEM, said Wednesday it is closely monitoring the stolen funds, adding, "None of the stolen funds have been sent to any exchanges. Officials at the watchdog and the company were not immediately available for comment. The FSA is now probing Coincheck's finances and trying to determine how the hack took place, as well as whether proper security measures have been set up, the Nikkei newspaper reported. ![]() More from Global Investing Hot Spots: Bitcoin's January struggles may hold clues for the future Both stocks and bonds in a bubble? Warren Buffett, already 'god of stocks' in China The company has said it will reimburse them with yen, but questions have emerged about its ability to pay, as well as why it had currencies stored in a hot wallet connected to the internet and thus potentially vulnerable to thieves. Some 260,000 Coincheck customers were victimized in the theft. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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