Coincheck receives operational licence in Japan

The crypto exchange has satisfied the regulators’ requirements for business improvements

Coincheck receives operational licence in Japan

Coincheck, the Japanese cryptocurrency exchange suffered a high-profile cyber attack last January, has finally received a licence to operate in the country, industry website Coindesk has reported.

Coincheck announced today in a press release that it was now registered with the Kanto Financial Bureau, in accordance the country’s Payment Service Act. The registration was approved by Japan’s financial regulator, the Financial Services Agency (FSA), after Coincheck improved its business in areas such as risk management and customer protection.

“Since the hacking incident in January 2018 that caused illegal remittances of the cryptocurrency NEM, Coincheck has suspended certain services in order to focus on enhancing governance and internal controls by developing business improvement plans and carrying them out,” Coincheck wrote in the press release. “In addition, supported by outside experts, Coincheck has worked on enhancing technical safety, and gradually resumed the services in which the technical safety had been confirmed. On November 26, 2018, all tradable cryptocurrencies we offered became available for depositing, remitting, purchasing, and selling.”

Coincheck also said that it was committed to further improving its service in terms of security and usability.

The Coincheck hack, which took place on January 26 and resulted in the theft of more than $500 million worth of NEM (XEM) tokens, forced the Japanese authorities to step up its efforts to regulate the sector. The FSA, in particular issued a wave of punitive measures against a number of exchanges operating in the country. Coincheck was one of the platforms that received regulatory notices to raise its business standards.

In April, the platform was fully acquired by Japanese online brokerage Monex Group for $33.5 million. The move was part of Monex’s previously announced strategy to tap into the digital currency sector.

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