Japanese Exchanges ‘Punished’ By FSA Regulators

  • FSA suspended trading on 2 Japanese exchanges for 30 days
  • 5 Japanese exchanges were found to have inadequate security and most produce a security audit by March 22nd

The Japanese Financial Services Agency (FSA) stated on Thursday 8th that it has suspended two cryptocurrency exchanges. Each suspension is a month long and starts from today. The suspension has been ordered as the result of poor security and compliance standards.

Bit Station and FSHO were the exchanges that had trading halted for a month. However, 5 other exchanges came under fire from the FSA and must produce and submit a ‘Security Improvement Plan’ by March 22nd. 

The FSA found these five exchanges to have insufficient security measures. Those five exchanges are Tech Bureau, GMO Coin, Mister Exchange, Bicrements as well as Coincheck.

Coincheck

Coincheck suffered one of the worst cyber heists in history in late January this year. Over $500 million in NEM were stolen. It is thought that the heist prompted Japanese regulators to conduct more thorough checks of all crypto exchanges in the country. The Coincheck CEO Koichiro Wada even agreed with the FSA decisions and said that the current systems:

“Weren’t in keeping with the expansion of our business”

Coincheck CEO Koichiro Wada

Coincheck said a hacker used malware to infiltrate the network, the hacker then proceeded to steal an encrypted key which was used to transfer coins out of the exchange. Despite claiming to store the majority of their funds in ‘cold storage’, the coins were stolen from ‘hot wallets’ which are exposed to the internet making the coins more vulnerable.

Unregistered Exchanges

According to an article from Reuters, many of the exchanges in Japan are unregistered with the FSA. 

“It’s problematic that these 16 unregistered exchanges have been able to continue trading... In the first place, should they have been allowed to operate while their applications for registrations are still incomplete?”

Sanae Takaichi

It is not just the unregistered exchanges that have been deemed to fall short in security measures. The FAS found that GMO Coin, a registered exchange, was suffering system glitches frequently and the exchange was unable to identify the root cause of the glitch. It is the FSA's hope that, by ordering security reports for March 22nd, another possible Coincheck scenario can be avoided.

NFL Players Keep Buying Bitcoin; Binance Chain to Hard Fork

The top daily news from the cryptocurrency and blockchain space:

  • LedgerX wins regulatory nod on physically-settled bitcoin futures.
  • NFL players continue to buy up bitcoin.
  • Binance Chain set for major hard fork.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $12,595.5 (+11.4%) and $325.7 (+4.0%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 5,135.9 (+4.3%).

Bitcoin Ethereum CryptoCompare

LedgerX Wins Regulatory Nod on Physically-Settled Bitcoin Futures

U.S.-regulated bitcoin derivatives exchange and clearinghouse, LedgerX, had its application for designation as a contract maker approved by the U.S. Commodity Futures Trading Commission (CTFC); meaning it can now offer physically-settled bitcoin futures contracts.

With its application – which was initially filed in November 2018 – now approved by the CTFC, LedgerX will be able to list bitcoin derivatives contracts, including both options and futures, and offer them to investors, regardless of whether they are of a retail or institutional background. Such products are expected to trade on a new platform known as LedgerX Omni, the New York-based company shared in a blog post.

NFL Players Buy into Bitcoin Bull Run

How many NFL players have purchased bitcoin? At least 32.

That’s according to star NFL player and staunch Bitcoin proponent, Russell Okung, who today upwardly revised a June 17 tweet wherein he declared there were “at least 30” players in the NFL who had purchased the world’s top cryptocurrency by market cap.

Okung – who serves on the executive committee of the NFL Players Association – first updated his count on Tuesday evening (PT) from 30 to 31. Then, an hour later, he once more updated the tally to 32.

Prompting the second of the two updates was Oren Burks, a linebacker for the Green Bay Packers who responded to Okung’s June 17 tweet with the hashtag ‘HODL’, the popular term used within the crypto community when one intends to keep – rather than sell – their cryptocurrency holdings.

Binance Chain Set for ‘Galileo’ Hard Fork

Appearing on the Binance Chain community forum was a post outlining a June 26 Binance Chain testnet hard fork. The upgrade, which has been dubbed ‘Galileo’, will bring with it various changes to Binance Chain nodes, the Binance Chain client, and the fork of Tendermint upon which Binance Chain is built atop.

Some notable features of the upcoming Binance Chain hard fork include token time-locking capabilities and a newfound ability of validators to, in relation to Binance DEX, “create a delist proposal and vote on delisting trading pairs via governance.”

As for when the Binance Chain mainnet will receive the ‘Galileo’ upgrade, Tuesday’s post stated it will be “a few weeks” from now. A separate announcement will come in relation to this.