GMO Coin voices concerns about use of automated trading software

GMO Coin, the virtual currency trading subsidiary of GMO Internet Inc. (TYO:9449) has earlier today voiced its concerns about certain risky trading methods employed by some of its clients.

The company noted that some of its clients have been using automated trading software. This, GMO Coin warns, may lead to a system overload and, thus, may negatively impact the trading of other clients. In cases where the company determines that a client is using automatic trading software, it may suspend or restrict dealings of this client.

In addition, the company has prohibited transactions done from accounts using other people’s names, such as transactions using names of family members or accounts of friends. The trading using a pseudonym is banned too. When there is a suspicion that a person other than the account holder is using the account, the company may limit or stop the dealings.

The warnings, which underline the risks that cryptocurrency businesses face, were issued just a day after GMO Coin confirmed that its clients had experienced issues accessing its platform late on November 13, 2017. The first problems were reported around 23.00 (Japanese time) on November 13, 2017, with customers experiencing problems with exchange rates and with connecting to the platform. GMO Coin has dubbed the incident a “system failure” but did not provide any details on the cause for what had happened. The service was restored around midnight.

The company said it continued to monitor the situation and was examining the scope of the problem. There has been no elaboration on the causes of the issues thus far.

At the same time, GMO Coin, which officially launched in May this year, continues to expand its services. In September, it added Bitcoin Cash and Ethereum to its offering, whereas in October, it added Litecoin. Ripple and Ethereum Classic are set to join the lineup in November and December, respectively.