Monex comments on press speculation about acquisition of Coincheck
The broker confirms it is considering acquiring a cryptocurrency business but says no firm decision has been made yet.
Online trading services provider Monex Group, Inc. (TYO:8698) was prompted to respond to press speculation today after the Nikkei Asian Review published an article about the Japanese brokerage acquiring the hacked cryptocurrency exchange Coincheck.
In its press release, Monex confirmed that it has been considering the acquisition of a cryptocurrency business but insisted that no firm decision has been made yet.
Let’s recall that the broker has promised a new beginning to its clients and investors via the development and adoption of new technologies. The aim of the company is to utilize Blockchain technology in a way that would enable safe, low-cost transactions of a diverse range of financial products and money. Monex has also unveiled plans concerning virtual currencies, including the launch of a virtual currency exchange business by Monex, Inc. and operating a virtual currency exchange via start-up investment. The company has said it also plans to provide a virtual currency as a new trading item.
In January this year, the Financial Services Agency (FSA) announced the issuance of a business improvement order to Coincheck following an “incident” that saw the theft of JPY 58 billion worth of NEM digital money from the exchange.
The regulator 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 told to formulate measures to prevent recurrence of the incident.
The Coincheck “incident” has led to a wave of action against other cryptocurrency exchanges in Japan. GMO Coin, the virtual currency business of GMO Internet Inc. (TYO:9449), got a business improvement order too, as the Japanese regulators voiced concerns about the system troubles occurring frequently as a result of the rapid expansion of the virtual currency exchange business. According to the regulator, the root cause analysis for these problems was inadequate and appropriate measures to avoid recurrence of the incidents were not taken.
