Nippon’s Financial Regulator Grants Crypto Exchange License to Coincheck

Coincheck, a crypto exchange firm has finally got an approval from Japan’s Financial Service Agency (FSA). The crypto exchange firm announced in a press release on January 11, that it has finally registered as a crypto exchange with Kanto Financial Bureau.

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The crypto exchange firm had lost $530 million worth altcoins in January 2018 after the hacking incident.

Coincheck, Inc. which is a fully owned subsidiary of Monex Group, stated in its press release that

“Complying with the “Registration Process for Cryptocurrency Exchange” which was publicized on October 24, 2018 by the Financial Services Agency of Japan, Coincheck has given a full explanation to the agency on the firm’s business descriptions, plans, and basic philosophy on risk management, as well as on the development of the firm’s governance with concrete internal controls and customer protection in mind.”

The Japan Virtual Currency Exchange Association (JVCEA), which is the self-regulatory body for cryptocurrency exchanges in Japan published a notice on January 11. A notice declared that the FSA had made a public statement that Coincheck is now officially a registered exchange, with registration number Kanto Local Finance Bureau No. 00014.

Coincheck is more cautious after the hacking incident in January 2018 that caused illegal payments of cryptocurrency New Economy Movement (NEM). The crypto exchange firm has discontinued certain services with plans to focus on improving governance and internal controls by developing business improvement plans.

COINCHECK IS CONCENTRATED ON ENHANCING TECHNICAL SAFETY AND OFFERS ALL TRADABLE CRYPTOCURRENCIES FOR PURCHASING, DEPOSITING, REMITTING, AND SELLING.

Soon after the hacking attacks on Coincheck last year, the firm is emphasizing on improving technical safety. The firm gradually resumed the services which offered tradable cryptocurrencies from November 26, 2018, and was available for purchasing, depositing, remitting, and selling.

Pina Hirano, CEO of Blockchain Collaborative Consortium referring to FSA’s approval for crypto exchange license to Coincheck said on Twitter that “FSA defends against unauthorized access (hacking), separates management of customer’s assets and its assets, measures against money laundering (money washing) Evaluated that the initiative was advanced, which led to formal registration.”

The FSA has published a virtual currency exchange trader registration list. Coincheck is the latest company to be listed on the virtual currency exchange list.

Coincheck in its report concluded that the firm believes it has reached a milestone after registering as a crypto exchange agency. The firm also said that it will strive to continue offering reliable services for their current and prospective customers in a safe and stable manner.

In the wake of cryptocurrency hacking attack, Coincheck along with four other crypto companies had registered with JVCEA on January 04.

Japan looks to cryptocurrency with a new perspective this year. The country’s financial regulator, FSA has implemented new regulations for the firms involved in cryptocurrency businesses. FSA is exercising a stronger approach in protecting the crypto exchanges and traders from malicious activities.