Coincheck wins back cryptocurrency exchange license from Japan FSA
Japanese crypto exchange, Coincheck, has been granted a cryptocurrency exchange license by the Financial Services Agency [FSA]. The exchange announced that it has registered as a cryptocurrency exchange under the Kanto Financial Bureau, according to a press release.
“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 said in an official press release.
The Coincheck hack which happened in January saw the attackers take off with $500 million worth of NEM tokens from the exchange. The exchange identified 11 addresses to which the stolen NEM was sent. The exchange stored its cryptocurrencies in a hot wallet which was connected to other networks. It also lacked the multi-signature security feature which allowed the hacker to rip the exchange of its assets.
“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,” added the press release.
This hack has added more stringent regulations for the Japanese crypto exchanges. In the wake of the Coincheck hack, Japan’s Financial services agency [FSA] decided to execute more stringent regulations for new applications from exchanges seeking an operating license. According to the new regulations, newly registered cryptocurrency exchanges will have on-site inspections at a very early stage and the agency will also have a close look at their business models. The FSA said that an ongoing review of registration procedures is necessary for all the crypto exchanges in the country and it will continue to prioritize investor protection.
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