The Coincheck incident prompted Japanese cryptocurrency exchanges to step up self-regulation

nBankruptcy comment: Not long ago, Coincheck, one of Japan’s largest encrypted currency exchanges, was stolen a new currency worth 58 billion yen by hacking, which has surpassed the previously famous Mentougou incident. Although the outbreak of this incident did not cause a great panic, but also brought no small blow to the currency market. Since then, Japan’s Blockchain Association (JBA) has urged its members, especially the cryptocurrency exchange, to step up their self-regulatory process by self-checking the safety of exchanges and guarding against the recurrence of similar incidents. At the same time, Japan Financial Services Agency (FSA), Tokyo Metropolitan Police Department are investigating this incident.n
nTranslation: Clovern
After Coincheck, one of Japan’s largest cryptocurrency exchange, was hacked to steal large amounts of cryptocurrencies, the Japanese cryptocurrency exchange began stepping up its self-regulatory process. The Financial Services Agency has not yet approved Coincheck registered as a cryptocurrency exchange.n
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Strengthen self-disciplinen
Not long ago, Japan’s Blockchain Association (JBA) had set itself a standard of self-regulation for voluntary adoption by members of its cryptocurrency exchange. These criteria include “maintaining the cold wallet, etc. with the consent of the member concerned.” The association announced these standards on Saturday after a hacker attack on Coincheck, one of the association’s members, resulted in a loss of about ¥ 58 billion on the platform.n

Currently, the association has 127 members, of which 15 are cryptocurrency exchange members and 35 are block chain members. Cryptocurrency exchange members include Bitflyer, Coincheck, GMO Coin and Bitocean. Yuzo Kano, chief executive of Bitflyer, is the board’s director. JBA’s announcement shows:n
n”In fact, the work of maintaining hardware wallets has been postponed, which led to the current outflow of funds illegal situation, very regrettable.”n
nThe association noted that the Japan Financial Services Agency (FSA) has warned representatives of each cryptocurrency exchange to warn of their safety concerns. “We’re working on further steps,” the JBA emphasized, adding that it has told members of the cryptocurrency exchange to “check the security posture based on the likelihood of a cyberattack.” The association states:n
n”In the future, in order to properly ensure the safety of traders in the virtual currency exchange … we will make stricter self-regulation and require members to comply.”n
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FSA’s concern for the Coincheck incidentn


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According to the Japan Times, the FSA has “urged Coincheck to address security issues in customer asset management ahead of the stolen value of 58 billion yen worth of new money Friday.” The source quoted the source as saying:n
nIn a survey released in late August, the FSA asked exchange applicants to explain how to distribute their assets in both types of accounts (cold, hot wallets) … After Coincheck filed for registration in September, the FSA highlighted its computer system In the presence of unauthorized access and urged it to enhance its security. “n
nThe news media pointed out that the financial sector usually takes two months to approve a crypto currency exchange application, and Coincheck’s application has been reviewed after four months.n
According to a Reuters report, the FSA has ordered Coincheck to submit a “hands-on report” and a report on measures taken to prevent recurrence of such incidents by February 13. “Reuters also said that in addition to this, the agency may also” file other transactions Conducted by the scene investigation. “Tokyo Metropolitan Police Department will also be the exchange was investigated for incidents.n

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