Japan-based crypto exchange Coincheck suffered a hack in January which cost the company a loss of over $500 million. This theft is ranked as one of the largest in the history of cryptocurrency and was made possible due to the vulnerable security system of the exchange.
The hackers saw the system vulnerability and exploited it to the fullest, thereby robbing the exchange of such a considerable amount of money. Each of the New Economy Movement (NEM) tokens had a value of over one dollar. At the time, Tokyo-based Bloomberg reporter Yuji Nakamura noted that Coincheck was yet to receive an exchange license from the Japanese Financial Services Agency (FSA). The FSA had extended a grace period to Coincheck even though the scheduled deadline was October.
After some months, a period that saw the sale of the exchange as well as the implementation of key changes to its operations by the persuasion of the government of Japan, the country’s media have announced that Coincheck will finally be awarded a license before the year ends. Even though the company has changed management, it didn’t stop it from signing new clients who began last November.
As was mentioned earlier, the exchange made changes to its operations and one them one was delisting three privacy coins, Dash, Zcash and Monero. Coincheck stated that this was done as a business strategy to ensure the protection of its customers. It is possible that the licensing process had much to do with it so that if a hack attack were to occur in the future, it would be much easier to hide the destination addresses.
Coincheck, A Mediocre Exchange at the Moment?
Over the months, the use of Coincheck has greatly decreased despite compensating users who lost NEM.
The last 24 hours have witnessed a $22 million volume done by Coincheck which earned it a middle position on the list of top exchanges based on its value. The news of the licensing will possibly elevate its position in the Japanese market, though Binance, another Asian exchange, continues to reign as a global leader in general. A large range of pairs is a contributing factor to the large volume of Binance, while the fiat/BTC market is the primary focus of Coincheck.
Earlier in the year, the Japanese Financial Service Agency announced an ICO regulation framework and as a result, more than 200 other cryptocurrency exchanges and businesses based in Japan are currently awaiting approval from the agency.