Not many cryptocurrency exchanges have been able to get back on track after suffering a major hack. And the one that has done it has strived for quite some time get back to glory days. Well looking at this trend, it seems Coincheck has done some tremendous work and is about to be licensed by the Japanese regulator within a year of its hack
Coincheck has taken tremendous measures to improve operations
Most part of 2018 has been a tough year for Japan-based crypto exchange, Coincheck but looks like they are going to enter 2019 with a much brighter smile. With a year of being hacked and within a month of restoring back operations looks like the exchange would soon receive its cryptocurrency exchange license from Japan’s Financial Services Agency.
Coincheck began 2018 on a bad note as it was reported that the exchange had informed the authorities of an “inappropriate transfer” of $532 mn worth of NEM. The hack was so big that NEM Foundation president Lon Wong called the stolen funds “the biggest theft in the history of the world.” This hack forced Japanese regulators to intensify scrutiny on domestic exchanges.
The hack also forced the exchange to change its shareholder composition and other management system and in April 2018 Japanese financial services provider Monex Group announced that it will acquire 100 percent of shares of Coincheck Inc. Since then the exchange has functioned as a wholly owned subsidiary of Monex Group.
At the time of hack Coincheck was Japan’s largest cryptocurrency exchange and after being hacked, the FSA had twice ordered the exchange to improve its business operations; the agency found it was unprepared in regard to customer protection and money laundering.
This time the regulator seemed satisfied and after looking at the improved customer protection and other systems that are now put up Monex Group, the regulator decided to grant the license
According to Nikkei Asia that broke this news, The FSA’s decision to grant a license to Coincheck is expected to trigger the resumption of the agency’s approval process. Nearly 200 companies are said to be waiting for licenses. In deciding whether to grant licenses, the FSA will continue scrutinizing business plans, anti-hacking measures and the effectiveness of shields put up against other misconduct.
After having lost its face, the complete resumption of services for all cryptocurrencies and the license should help Coincheck return to its glory days sooner. A hack is always a miserable thing for an exchange and Coincheck’s revival should definitely work as an example for other exchanges. One will have to see what plans does Monex have in mind with respect to Coincheck now.
Will Coincheck be able to get back to its glory days? Do let us know your views on the same.
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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com