Coincheck Registered as Crypto Exchange A Year after Hack

Politics

Tokyo, Jan. 11 (Jiji Press)--Japan's Financial Services Agency officially registered Coincheck Inc. as a cryptocurrency exchange operator under the payment services law on Friday, about a year after a hack that led to the theft of massive customer assets from the exchange.

The FSA concluded that Coincheck, which has come under the wing of major Japanese online brokerage house Monex Group Inc. <8698> and revamped its management team, now has in place a system to safely manage cryptocurrencies and prevent money laundering.

As much as 58 billion yen in customer assets held in NEM, a type of cryptocurrency, was stolen from Coincheck due to the cyberattack in January 2018, when the FSA was examining the company's application for its registration under the law.

Following the incident, the FSA issued business improvement orders to Coincheck in January and March 2018. The orders were lifted on Friday in line with the registration.

"As the business environment surrounding the cryptocurrency industry tends to change drastically, we'll make constant efforts to beef up the safety of our system and strengthen our internal control system," Toshihiko Katsuya, president of the Tokyo-based company, told a press conference in the Japanese capital on Friday.

[Copyright The Jiji Press, Ltd.]

Jiji Press