![]() China, worried about financial risks from such trading, has ordered some exchanges in Beijing to close.The NEM Foundation has called off the hunt for the more than 500 million XEM tokens stolen in connection with a record-setting theft at cryptocurrency exchange Coincheck, as cybersecurity experts believe most or all of the funds have been laundered by the hackers. South Korea will this week ban cryptocurrency traders from using anonymous bank accounts to crack down on the criminal use of virtual coins. Japan's top financial diplomat said regulation of cryptocurrencies would likely be on the agenda at the G20 finance chiefs' meeting in Argentina in March. Treasury Secretary Steven Mnuchin relating Washington's concern about the money being used for illicit activity. ![]() World leaders meeting in Davos last week issued fresh warnings about the dangers of cryptocurrencies, with U.S. More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice last year. Gox, which once handled 80 percent of the world's bitcoin trades, filed for bankruptcy after losing around half a billion dollars worth of bitcoins. It added that the hacker had not moved any of the funds to any exchange or personal accounts but that it had no way to return the stolen funds to its owners. Singapore-based NEM Foundation said it had a tracing system on the NEM blockchain and that it had "a full account" of all of Coincheck's lost NEM coins. "I have to admit that all cryptocurrencies will now be tainted in their minds, so there may be a mid-term negative impact," said Genki Oda, president of BitPoint Japan. Crypto-currency related shares mostly rose in Tokyo, with GMO Internet, which offers cryptocurrency exchange services, gaining 5.7 pct.Įxchange operators in Tokyo said the Coincheck hack will likely cause concerns over security to grow among consumers, potentially pressuring the price of cryptocurrencies. NEM fell to $0.78 from $1.01 on Friday but recovered to $0.95 late on Monday afternoon, according to CoinMarketCap. If Coincheck screws up its crisis management, that could deal a blow to the current cryptocurrency fever." ![]() "This incident showed that the problem has not been solved at all. "It's been long said that cryptocurrencies are a solid system but cryptocurrency exchanges are not," said Makoto Sakuma, research fellow at NLI Research Institute. Coincheck's application was made in September. The FSA has registered 16 cryptocurrency exchanges so far, and another 16 are still awaiting clearance. ![]() Japan started to require cryptocurrency exchange operators to register with the government only in April 2017, allowing pre-existing operators such as Coincheck to continue offering services ahead of formal registration. 13, and that it will, if necessary, conduct on-site inspections of other cryptocurrency exchanges. The FSA said it ordered Coincheck to submit a report on the hack and measures for preventing a recurrence by Feb. Last year, it became the first country to regulate exchanges at the national level - a move that won praise for boosting innovation and protecting consumers, and that contrasts sharply with crackdowns in South Korea and China. The hack has drawn into focus Japan's approach to regulating cryptocurrency exchanges. It also does not use an extra layer of security known as a multi-signature system. The NEM coins were stored in a "hot wallet" instead of the more secure "cold wallet", which operates on platforms not directly connected to the internet, Coincheck said. The Financial Services Agency (FSA) on Monday ordered improvements to operations at Tokyo-based Coincheck, which on Friday suspended trading in all cryptocurrencies except bitcoin after hackers stole 58 billion yen ($534 million) of NEM coins, among the most popular digital currencies in the world.Ĭoincheck said on Sunday it would return about 90 percent with internal funds, though it has yet to figure out how or when.
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