Japanese Exchanges to Firm Regulation, Face Gov’t Probes After $530 mln Hack

Japanese Exchanges to Firm Regulation, Face Gov’t Probes After $530 mln Hack

A few days ago it was revealed that 500 million NEM, which is approximately $530 million, had been thieved from the Tokyo-based cyber money trading platform Coincheck. The alleged reason of what is estimated to be the most extensive theft in the history of digital assets was a cyber-attack. After that, other Japanese exchanges started reinforcing their self-controlling policies. In the meantime, Coincheck remains unrecognized as the trading platform by Japanese authorities.

Hot N Cold

Japanese cyber-coins exchanges, as well as other terms of the virtual money community, are calling for the broader adoption of cold wallets as they are held online and are difficult for hackers to access, on the contrary to hot wallets.

Our top trading bots

On January 27, on the very next day after Coinchek’s executives announced the tragic hack, the Japan Blockchain Association announced that it set out recommendations for its members to adhere to. Among them, apparently, was the advice to use cold wallets. Interestingly, Coincheck experienced a vast theft only because it kept a massive amount of funds insecure hot wallet, losing about $530 million.

“The fact that the maintenance of the cold wallet was delayed caused the current illegal outflow. It is very regrettable,” stated the JBA announcement.

Coincheck, by the way, is the member at JBA, but except it, there are other 14 exchange terms, e.g., bitFlyer, Bitocean, as well as GMO Coin. On top of that, the association includes 35 blockchain and lots of others, with 127 members in total. The organization turned to all its members with the request to check out their security state so as to prevent any hacking.

‘A danger foreseen is a danger avoided’

The enormous Coincheck theft urged dozens of other crypto community members to check out their security conditions. But why Coincheck on its own did not try to prevent a danger? Notably, Japanese authorities, The Financial Services Agency, in particular, had induced the affected platform Coincheck to solve its security problems before that cyber-attack occurred.

Back in September 2017, Coincheck applied for registration as an exchange, and that was the time when FSA pointed out at its safety flaws. As it can be seen now, the platform did not try to do anything about the breaches, and the consequences are devastating.

Now, Coincheck will have to improve its operations in the care of the country’s authorities, while other platforms will be investigated with a view to reliability, according to Reuters.

$60K is now more likely for Bitcoin than $20K, Bloomberg's senior strategist asserts
Bitcoin (BTC) has a better probability of recovering back to $60,000 than breaking below its current support level of $30,000 to target $20,000, believes...
Concern as Uniswap-backed 'DeFi Education Fund' dumps $10M worth of UNI
The controversial Uniswap-funded DeFi Education Fund has liquidated half of its donated funding into stablecoins, attracting condemnation from many in the...
Korean investigation finds $1.48B in illegal overseas crypto transactions
An interagency investigation into suspected crypto fraud and money laundering in South Korea has led to the discovery of 1.69 trillion won (about $1.48...
Hype is over: How NFTs and art will benefit from each other moving forward
Due to the past nonfungible token (NFT) boom, the crypto and art communities have been collaborating closely — maybe for the first time in history. In both...
Bipartisan bill to study blockchain and crypto passes US House of Representatives
A bipartisan bill that requires the study of blockchain technology and digital tokens passed the House of Representatives on June 22. The “Consumer Safety...
South Korean crypto exchanges banned from handling coins they issued themselves
The increased regulatory scrutiny that befell South Korea’s cryptocurrency space in recent times appears to have extended to include exchange tokens.Exchange...
Price analysis 6/16: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, LTC, BCH
Bitcoin’s price (BTC) turned down from just above the $41,000 mark on June 15, suggesting that traders are halting their purchases at higher levels. Traders...
Uniswap v3 flips v2 on volume — and both versions flip Bitcoin on fee revenue
The world’s largest decentralized exchange keeps growing and the newly-launched third iteration has now surpassed version two in terms of daily volumes.In...
Polygon (MATIC) jumps ahead as the race for Layer-2 adoption picks up
Recently layer 1 solutions like the Solana (SOL) and Cosmos (ATOM) have grown in prominence thanks to each network's faster transaction times and lower...
Paxful denies reports of customer data leak
An anonymous online source was recently spotted trying to sell private customer and employee data allegedly obtained from crypto exchange Paxful. A spokesperson...
Cointelegraph Consulting: Deep diving with Ethereum whales
Covalent’s latest findings in Cointelegraph Consulting’s biweekly newsletter investigates the anatomy of Ether (ETH) whales. The data indicates that the...
Retail traders become 'sitting ducks' as sell-off triggers $1.4B liquidation
After flirting with a $2 trillion market capitalization for the last couple of days, the cryptocurrency market took a 7% hit on April 7, dropping the total...
Nexo faces lawsuit for liquidating $5m in client collateral amid XRP delisting
United States-based crypto lending platform Nexo is facing a class-action lawsuit over suspension of XRP services on Dec. 23, 2020. The lead plaintiff,...
Bitcoin miners back hash rate derivative DeFi project on BSC
A group of Bitcoin (BTC) mining companies have put their weight behind Standard Hashrate and its recently launched TAU Protocol, a synthetic asset platform...
Ukraine to Recognize Mining As Economic Activity
As Ukrainian legislators are struggling to come up with the final version of the bill on cyber money, the country’s government decided to take the bull...