As cryptocurrency concerns grow, GMO Coin seeks to reassure clients on protection systems
As Japanese regulators promise tightening of oversight on cryptocurrency exchanges, GMO Coin aims to reassure its clients that necessary safeguards are in place.
Amid the havoc surrounding Coincheck and promises by the Japanese regulators of stricter oversight of cryptocurrency exchanges, GMO Coin, the virtual currency trading subsidiary of GMO Internet Inc. (TYO:9449), has sought to reassure its clients that the necessary safeguards are in place to protect their assets.
In a notice published on its website earlier today, GMO Coin enlists the measures implemented to protect customer assets.
These include separate management of customer assets, that is, segregated management. The company manages all customer assets separately from its own ones. All excesses and deficiencies are calculated on a daily basis.
With regard to cryptocurrency storage, the company explains that all virtual currency, apart from that necessary for immediate delivery, is kept in cold wallets. Any transfer from the cold wallet to the hot wallet requires multiple signatures from several departments. There are also a number of secret keys for the transfer of virtual currency.
The measures against cyberattacks include multiple-step verification and authentication procedures, as well as constant monitoring of the systems. External security experts also conduct regular diagnostics of any system vulnerabilities.
Thus far, GMO Coin has not reported any cyber attacks. It has, however, been affected by tech issues. A recent example was reported in early January. The problems started around 14:00 (local time) on January 4, 2018, with many of the customers not being able to access the platform. GMO Coin did not specify the particular reason for the problems but said that it managed to restore the normal operations around 19:00 (local time). In the meantime, the social media channels of the company were flooded with angry comments of disgruntled traders.
GMO Coin, which officially launched in May last year, is gradually expanding its services. In September, it added Bitcoin Cash and Ethereum to its offering, whereas in October, it added Litecoin. The launch of Ripple was, however, followed by a period of restrictions.
