Japanese Crypto Exchange Coincheck Granted a License, a Year after $530 Million Hack

Japanese Crypto Exchange Coincheck Granted a License, a Year after $530 Million Hack

Nearly one year after a $0.5 billion hacking incident, Coincheck has been handed a cryptocurrency exchange license.

In a statement, the exchange’s operator indicated that beginning January 11, 2019, it is now registered as a cryptocurrency exchange agency with the Kanto Financial Bureau, the overseeing regulator.

This is the first time Coincheck will be operating as a licensed outfit. At the time of the hack when the exchange lost New Economy Movement (NEM) tokens with a combined worth of more than $500 million, the firm was awaiting a license.

Registration Requirements

To get the license, Coincheck had to meet the registration requirements for crypto exchanges as was set out by Japan’s financial regulator last year. The firm also had to demonstrate that it had internal controls in place necessary to ensure customers had adequate protections:

As CCN reported last month, Japanese media had been expecting Coincheck to be granted the license by the end of 2018.

To get to this stage, the exchange has had to overhaul its business and this has included bringing on board new owners. In April last year, the cryptocurrency exchange accepted a takeover bid from Japanese online brokerage Monex. The takeover bid saw Monex acquire the entire firm at a price of $33.5 million:

Management Changes

Additionally, Coincheck also reshuffled its management and this was one of the conditions Monex had given when presenting the buyout bid. This saw the founding president and then-chief operating officer of Coincheck, Yusuke Otsuka, replaced by a Monex employee, Toshihiko Katsuya. The founder and then-CEO of Coincheck, Koichiro Wada, also stepped down.

Coincheck has also had to delist privacy coins such as Dash, ZCash and Monero from its platform. This is because they risked preventing the firm from achieving and maintaining compliance ‘with Anti-Money Laundering regulations’.

Besides privacy coins, Coincheck also delisted the token of decentralized oracle and prediction market protocol, Augur. This was seen as an effort to distance the exchange from a token which is associated with unlicensed gambling.

Featured image from Shutterstock.

11.01.2019 / 05:00 29
Japanese Bitcoin Exchange Coincheck that Lost $500M to Receive Full Licensing By End of Year Japanese Bitcoin Exchange Coincheck
TweetShare Readers may recall the January hack that cost Coincheck over $500 million. The largest theft in cryptocurrency history, the hack saw the
Infamous Crypto Exchange Coincheck Unsure about Reopening after $500 Million Hack Infamous Crypto Exchange Coincheck
According to several local sources, Coincheck, a major Japanese crypto exchange, is unsure of reopening its exchange after suffering a $500 million
160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals 160 Crypto Exchanges Seek to Enter
Japan’s top financial regulator has revealed exclusively to news.Bitcoin.com the number of crypto exchanges seeking to enter the Japanese market. The
Crypto Exchange Coincheck Made $491 Million Profit Prior to Hack Crypto Exchange Coincheck Made $491
Hacked cryptocurrency exchange Coincheck made 53.7 billion yen ($491 million) in profit for the fiscal year ending in March, according to financial
Two Japanese Cryptocurrency Exchanges to Shut down Amid Coincheck Hack Fallout: Report Two Japanese Cryptocurrency Exchanges
The increased scrutiny by Japan’s financial regulator following Coincheck’s infamous $530 million NEM theft will reportedly see two cryptocurrency
Japanese Financial Regulator Issues Punishment Notices For 7 Crypto Exchanges Japanese Financial Regulator Issues
The Japanese financial regulatory agency has sent business improvement orders to 7 crypto exchanges, including Coincheck, and halted activity at 2
Comments (0)
Add a comment
Comment on