Japanese crypto exchange Coincheck announced today that it has been registered as a cryptocurrency exchange with the Kanto Financial Bureau.
Coincheck was forced to terminate its operations in early-2018 after a major attack on the exchange that resulted in the theft of $534 million worth of NEM tokens – the largest crypto heist to date. The chaos alarmed the Financial Services Agency (FSA), the country’s financial watchdog, which in turn imposed strict laws on the business practices of crypto exchanges operating in the country.
The exchange also received multiple warnings from the FSA after the hack for maintaining a sub-par operational environment.
“Coincheck has given a full explanation to the agency on the firm’s business descriptions, plans, and basic philosophy on risk management, as well as on the development of the firm’s governance with concrete internal controls and customer protection in mind,” Coincheck noted in the official press release.
Staying Ahead: How Brokers Are Approaching 2020Go to article >>
Coincheck is Back from the Dead
At the time of the hack, Coincheck is said to have been the largest cryptocurrency exchange in Japan. However, the hack created a massive dent on its books as the exchange announced a reimbursement of $0.81 for each dollar of the stolen NEM using internal funding to all the victims.
In April 2018, Monex, a Japanese online trading giant, announced that it was taking over the exchange for just over $33.5 million and committed to rebuilding the trading platform.
The Japanese authorities also issued a provisional permit to the exchange to continue its operation while its registration application was under process.
In November, Monex reopened the exchange and allowed its users to trade cryptocurrencies maintaining all operational features.
“With the registration as a cryptocurrency exchange agency serving as a milestone, Coincheck strives to continue offering reliable services for our current and prospective customers in a safe and stable manner. Coincheck is also committed to further strengthening security and enhancing usability,” the note added further assuring its customers.