Japan's once-largest cryptocurrency exchange, Coincheck, has officially regained its license to operate legally from the Financial Services Agency (FSA) as of January 11. This marks a pivotal comeback after the platform suffered the largest crypto hack in history in 2018, losing ¥58 billion worth of NEM (XEM) tokens.
Regulatory Milestones in Japan’s Crypto Landscape
Legal Framework:
- The Payment Services Act, enacted April 1, 2020, mandates all crypto exchanges to register with the FSA.
- Bitcoin is recognized as a legal payment method in Japan.
Current Market:
- 17 FSA-approved exchanges, including QUOINE, bitFlyer, and SBI VC Trade, now operate legally.
- Coincheck joins this list after rigorous compliance reviews under Article 63-5 of the Payment Services Act.
The 2018 Hack: A Catalyst for Change
- Incident: Hackers stole 530 million XEM (~$534M at the time) due to lax security measures (hot wallet storage).
Aftermath:
- Immediate FSA suspension.
- Acquisition by Monex Group (a multinational online brokerage) in Q4 2020.
"Post-hack, we were under virtual house arrest—no new accounts, no crypto purchases. Full service resumed only in November."
— Yanaka Nakagawa, Monex Executive Director
Monex’s Strategic Vision for Coincheck
Parent Company Backing:
- Monex leads investments in ErisX (crypto futures platform) alongside Fidelity and Bitmain.
Market Relaunch:
- 9 cryptocurrencies reintroduced for trading.
- Focus on security upgrades and blockchain innovation.
FAQs
Q1: Is Coincheck safe now?
A: Yes. Post-acquisition, Monex implemented cold storage and multi-signature wallets to prevent future breaches.
Q2: What cryptocurrencies can I trade on Coincheck?
A: As of November 2020, BTC, ETH, XEM, and 6 others are available.
Q3: How does FSA regulation protect users?
A: Exchanges must segregate customer funds and undergo annual audits to maintain licenses.
The Road Ahead
With FSA approval, Coincheck aims to revitalize Japan’s crypto economy, blending traditional finance expertise from Monex with cutting-edge blockchain solutions.
👉 Explore secure trading platforms to navigate this evolving market confidently.
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