Japanese authorities issue business improvement order to virtual currency exchange operator Tech Bureau

Maria Nikolova

The order follows a JPY 6.7 billion heist of Zaif, a cryptocurrency exchange operated by Tech Bureau.

The Japanese authorities continue to grapple with a growing volume of problems related to the activities of virtual currency exchanges. Earlier today, the Ministry of Finance issued a business improvement order to Tech Bureau Inc, operator of cryptocurrency exchange Zaif.

Las week, Tech Bureau confirmed that about JPY 6.7 billion in virtual currency had been stolen. The virtual currency is reported to have been stolen from “hot wallets” that lack solid security. The hack, which happened between 5 p.m. and 7 p.m. on September 14, 2018, affected three types of cryptocurrency – Bitcoin, Bitcoin Cash and Monacoin.

In its announcement today, the Ministry of Finance said it will impose administrative penalties on Tech Bureau. In particular, the company will have to determine the root cause of the leak case and to clarify who is responsible for the security failures. The virtual currency exchange operator will also have to formulate and implement measures to prevent the recurrence of such accidents.

The company will also have to respond adequately to affected customers.

The Zaif heist cast a further shadow over the soundness and reputation of virtual currency exchanges in Japan. In January this year, Coincheck suffered a hacking incident which led to JPY 58 billion having been stolen. The Japanese regulators ordered the company to determine the facts and causes of this case and to issue proper response to customers. In addition, Coincheck was ordered to strengthen the management control of its risk management system and to clarify who bears the responsibility for the theft. The company was also instructed to to formulate measures to prevent recurrence of the incident.

Coincheck was eventually acquired by online trading expert Monex Group, Inc. (TYO:8698). On April 6, 2018, the broker confirmed earlier media reports that it would buy the Exchange. The deal, which covers 1,775,267 shares in Coincheck, is valued at JPY 3.6 billion.

Monex said it would aim to build a secure business environment for customers by fully backing up Coincheck’s enhancement process. In particular, Monex stated its intentions to maximize the use of its expertise and human resources of business administration, system risk management, and customer asset protection system.

Read this next

blockdag

These Altcoins Have The Potential To Make You a Millionaire in 2024

The crypto market is witnessing a surge, and certain alternate coins are catching attention for their rapid growth.

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

<