Japan’s Cryptocurrency Exchange Coincheck Resumes Yen Withdrawal
Japanese cryptocurrency exchange Coincheck, stung by the theft of $530 million of digital money last month.
Coincheck users withdrew ¥40.1 billion ($373 million) from the cryptocurrency exchange on Tuesday, the first day customers were allowed to pull out in the wake of the cybertheft of ¥58 billion ($533 million) worth of digital currency last month.
Suspected to have Stolen Millions from a Japanese Cryptocurrency Exchange
The Financial Services Agency ordered Coincheck to raise its standards after the hack, and gave the exchange until Feb. 13 to submit a report on the heist, the safety of its systems, and measures it would take to prevent a repeat.
Coincheck said on Friday it would allow customers to restart yen withdrawals on Tuesday. The exchange, which froze all withdrawals of yen as well as digital currencies following the theft, said it had confirmed the integrity of its system security.
The exchange is considering capital alliances and has engaged an external firm to verify its security before resuming full operations, he told reporters. Coincheck earlier submitted a report to the Financial Services Agency explaining how the hack occurred, what kind of support will be provided to customers and how systems will be bolstered to prevent future hacks, the company said in a separate statement.
Coincheck had been trying to confirm the safety of its platform following the heist in late January that forced it to suspend trading. The Financial Services Agency has conducted on-site inspections to see if the Tokyo-based exchange operator has a proper risk management system in place.
Still, the exchange said it would keep restrictions on cryptocurrency withdrawals until it could guarantee the secure resumption of its operations. It did not give further details.
Coincheck is one of 16 operators of virtual currency exchanges awaiting regulatory approval. Another 16 have already won approval under Japan’s law requiring exchange operators to register.
The company submitted its business improvement plan Tuesday afternoon to the FSA.
The revised funds settlement law took effect last April after another Tokyo-based cryptocurrency exchange, Mt. Gox, shut down in 2014 after ¥48 billion worth of bitcoins were stolen.
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