Japan Cracks Down On Cryptocurrency Exchanges after hacking scandal
After the cryptocurrency exchange Coincheck went through the wickedest hacking event in the history of the industry, Koichiro Wada its founder appeared to talk on a news conference to assure users that the startup had well-read from the experience. However, he was not the only person talking on this matter.
“Monex has been in the securities business for 20 years,” said Katsuya, who is also an executive at Monex. “By building in our knowledge, we have been able to rise to a considerably high level.”
Monex, which on Jan. 31 reported a 1.1 billion yen ($10 million) loss for its cryptoasset section in the April to December period, is among a group of monetary and internet services corporations that have learned troubled crypto exchanges from 2018. Monex the platform is going to interact with brokers and traditional markets, connecting multiple liquidity providers to attain volumes sufficient for core customers. The mood has changed from this hysteria of all kinds of startups everywhere he further explained, stating that solid crypto firms are getting mature amidst the late 2018 market collapse. At present they are in the process to reconstruct trust in the face of a lengthy weakening in the worth of bitcoin and other cryptocurrencies.
The poorest incident, in which 58 billion yen worth of customers’ crypto was taken from Coincheck, encouraged Japan’s Financial Services Agency to append supports of new exchanges. It also smacked numerous current exchanges with managerial authorizations, efficiently hesitant their marketing efforts. In spite of these measures, an additional 6.7 billion yen worth of cryptocurrency was whipped from Zaif in a drudge in September.
Naojiro Hisada, who heads Rakuten’s blockchain technology department, told the Nikkei Asian Review at a blockchain conference on Jan. 31. “I think there are various reasons for the market downturn, but one is the security incidents,” “We plan to offer a reliable service based on strong security, so there should be no problem. Cryptocurrency is another payment option that we want to gradually connect to various Rakuten services.”
Few of the self-governing exchanges such as Bitpoint Japan remain to see opportunities. President Genki Oda stated that the competition is wieldy as the largest brokerages and banks are still unwilling to enter the business. Bitpoint recently proclaimed plans to get a safeties license so it can offer new tokens and other financial products to cryptocurrency investors in the future.
On the other hand, few firms are yet to upbeat about the predictions for cryptocurrency in spite of a fall in charges. Bitcoin trading at 10 local exchanges stood at 731 billion yen in December, decreased nearly 90% as compared to 2018, as per to jpbitcoin.com.