Japanese authorities continue to investigate cryptocurrency exchanges in an attempt to evaluate security measures.
A report dated February 7, 2018 said that the Financial Services Agency (FSA) of Japan had begun to perform surprise inspections of cryptocurrency exchanges. In total, the 32 bags in Japan can receive visits from the FSA.
Last Friday, February 2, the FSA inspectors visited the headquarters of Coincheck Inc. in Tokyo. This inspection came after a piracy incident on January 26, where NEM tokens were stolen, equivalent to 530 million dollars in the exchange.
The funds were kept in a hot portfolio with defective security, unlike the multi-signature contract of NEM. The president of Coincheck said that the use of the unsafe wallet was the result of a lack of personnel and technical reasons.
At the end of January, the FSA gave Coincheck a deadline of February 13 to provide a report on the trick, evaluating the vector by which the funds were stolen. The FSA also ordered Coincheck to provide an "adequate response to customers" and integrate "risk management" measures.
Coincheck has agreed to reimburse users, but the FSA must still determine if the exchange has access to the capital that would be necessary.
As research on cryptocurrency exchanges continues, the FSA is committed to increasing the scope of its efforts based on its analysis of the reports.
A major difference between Japan is that overall, it is arguably the most crypto-friendly nation of all. They obviously got burned by the Mt Gox scandal of 2014 and more recently the Coincheck heist. Even with recent talk of taxes and regulation, the adoption of Bitcoin is very widespread.
Congratulations @joseriv898! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP