Unverified reports indicate that Coincheck, a Japanese cryptocurrency exchange previously hacked, has now received an exchange license from the country's financial regulator.
Key Developments
- On December 19, Nikkei Asian Review reported that Japan’s Financial Services Agency (FSA) issued an operating license to Coincheck.
- The FSA is expected to make an official announcement by year-end. However, Coincheck’s PR team clarified to Cointelegraph Japan that this news "is not official information from our exchange and remains unconfirmed."
Background: The 2018 Hack
- In January 2018, Coincheck suffered a major security breach, losing $532 million worth of NEM tokens from its hot wallet.
Following the attack, the FSA intensified scrutiny of domestic crypto exchanges and issued two improvement orders to Coincheck, focusing on:
- Investor protection measures
- Anti-money laundering (AML) compliance
👉 How exchanges recover from security breaches
Regulatory Landscape in Japan
- Since April 2017, revised Payment Services Act mandates all crypto exchanges in Japan to obtain licenses.
- The FSA has progressively tightened application requirements, with over 200 applicants pending approval as of October 2023.
Coincheck’s Recovery Efforts
Corporate Restructuring:
- Acquired by Monex Group in April 2018.
- Implemented new governance protocols and technical safeguards.
Customer Compensation:
- Fully reimbursed affected users.
Service Expansion:
- Resumed NEM trading in November 2023.
- Added support for ETH and LSK.
- Joined the Japan Network Security Association to rebuild trust.
FAQs
Q1: Is Coincheck now fully compliant with Japanese regulations?
A: While the FSA has granted provisional approval, ongoing compliance audits will determine long-term licensing status.
Q2: What cryptocurrencies does Coincheck currently support?
A: As of late 2023, NEM, ETH, and LSK are tradable, with plans to expand offerings.
Q3: How did Coincheck reimburse users after the hack?
A: All losses were covered via JPY repayments at 88.549 JPY per XEM (NEM token).
👉 Understanding crypto exchange security standards
Key Takeaways
- Regulatory Milestone: The FSA’s decision signals cautious optimism toward rehabilitated exchanges.
- Market Impact: Coincheck’s revival could encourage other hacked platforms to pursue stricter compliance.
- Future Challenges: Maintaining robust security and user trust remains critical in Japan’s competitive crypto landscape.
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