- Coincheck to accept new users and offer limited trading services 9 months after the $533 Million coin hack incident
- The crypto exchange company is now under new management and is set to offer its users limited trading services.
- Japan’s Financial Services Agency (FSA) has given Coincheck a business improvement order.
Coincheck has etched their name in the crypto industry’s history after being involved in what is considered one of the biggest crypto hacks ever recorded. The crypto exchange has confirmed that they have lost approximately $533 Million over this incident.
What’s in It for the New Users?
9 months after the security breach, the infamous exchange has managed to reopen and started accepting new users again. The company is now under the management of the publicly-traded financial services firm, Monex Group. The firm bought the exchange in April for $33.5 million.
New account openings at the exchange will only be available for residents of Japan. Those who have an account with them can start using the platform. According to reports, they can start trading for four cryptocurrencies; Bitcoin (BTC), Bitcoin cash (BCH), Litecoin (LTC) and Ethereum classic (ETC)
The same report says that there are also plans to resume trading of more currencies in time.
However, the exchange said that it won’t be supporting privacy coins such as zcash (ZEC), monero (XMR), and dash (DASH). This is after Coincheck has delisted the three privacy-centric cryptocurrencies.
Business Improvement Order for Coincheck
At the time of hack, Coincheck’s virtual currency license was pending. Due to the crypto exchange company’s reputation for lax security practices, Japan’s Financial Services Agency (FSA) has given the company a business improvement order.
Despite addressing FSA’s regulations listed in the business improvement order, Coincheck is still yet to receive a virtual currency license. Monex was quoted in its latest quarterly earnings report,
“Coincheck has built sophisticated internal controls, including a high-standard security management system, which has recently become expected for registered cryptocurrency exchange. Going forward, Coincheck will advance as a highly technology-driven company with a cutting-edge security control system and the know-how to secure profitability appropriate of its true value.”
This shows that the new owner, Monex Group, has outlined plans of rebranding the exchange to comply with Financial Services Authority’s regulations.
The same report has also revealed that Coincheck had a ~$5 million loss in the last fiscal quarter.