[2018-03-08] Japanese Regulators Suspend Two Crypto Exchanges

aso118

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Quote from: shakaru on March 08, 2018, 03:52:07 AM

Finance regulators in Japan have ordered month-long suspensions for two domestic cryptocurrency exchanges.

The Financial Services Agency (FSA) said on Thursday that it has issued business suspension orders to two exchanges - FSHO and Bit Station - effective for one month starting from today.

The FSA mandated that seven trading platforms in total must improve their system security measures and submit a written improvement plan by March 22. Those four exchanges are Tech Bureau, GMO Coin, Mister Exchange, Bike Limited as well as Coincheck, the exchange at the center of a recent $500 million heist that sparked the ongoing probe by the agency.

https://www.coindesk.com/japans-fsa-announces-suspension-of-two-crypto-exchanges/

A business suspension order can effectively kill a business. When it is for as long a period as a month, its revenues get shut off, its customers start looking elsewhere and even if it resumes business, the liquidity at the exchange will dry up. Plus the resumption of operations at these businesses is contingent on them improving security measures and submitting an improvement plan. No customer is going to hang around to see if that will happen. Hopefully, in the future the FSA will give its recommendations to exchanges before they begin operations.

poptok1

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Bobby Fischer was right

Quote from: gentlemand on March 08, 2018, 10:00:51 AM

Is there any precedent for someone being paid out successfully worldwide?

No, at least to my knowledge, but maybe it is their own fault? Think about it, why those companies avoid purchasing insurance from the mistakes of their employees? Such insurance plans do exist, most of the licensed taxation advisors have them here where I live.
Luckily it's not mandatory by law to have such plans so thanks to the lack of such law those can be quite affordable.
Would it financially ruin the crypto-exchange to buy it? I think not, it is a service and as such its terms can be negotiated, so as the price.
Maybe its time to start demanding just that from the platforms? Of course demanding as a customer not as a state lawmakers.

Harlot

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With the major heist that happened to their exchanges this is an expected move by the Japanese government. About two or three days ago the Japanese government has voiced out its concern about the security and creating a self regulatory board in order for them to avoid another heist. Suspending these exchanged will give them a lesson as they need to value also their customer's money. But I don't think a suspension is enough for them to learn, what they need is to have an increase in penalty where the last penalty would be a forfeiture of their license.

gentlemand

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Quote from: buwaytress on March 08, 2018, 09:44:14 AM

Now to see also if the insurance policies made compulsory will also pay out.

I'm MAJORLY sceptical that any crypto insurance company will ever pay out. There are so many potential holes that allows them to wriggle out of paying. The only way somewhere like Coinbase could be hacked would be by ignoring their usual cold storage systems which would presumably invalidate the insurance they have.

Is there any precedent for someone being paid out successfully worldwide? I know Bitpay attempted to claim over a million dollars due to a hack but the loss was down to an employee opening an email attachment so once again it was poor opsec. It looks like this also happened at Coincheck too.

buwaytress

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Quote from: gentlemand on March 08, 2018, 06:56:09 AM

Ah, if only they'd suspended Coincheck who proved emphatically that they're incompetent after leaving the door wide open for someone to half hundreds of millions of dollars' worth away.

I approve of this and would like to see more of it. If the exchanges can't sort their own shit out, and very, very few ever will, then someone else has to.

Right on. Some observers in Japan were skeptical of these exchanges actually possessing the requirements necessary to obtain their licences, and that hacks have already taken place proves this to be true.

I suppose it was always going to be trial and error, but if regulations are followed up by enforcement on errant licensees, then I believe we're witnessing a system and method that seems to be working. Now to see also if the insurance policies made compulsory will also pay out.

gentlemand

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Welt Am Draht

Ah, if only they'd suspended Coincheck who proved emphatically that they're incompetent after leaving the door wide open for someone to half hundreds of millions of dollars' worth away.

I approve of this and would like to see more of it. If the exchanges can't sort their own shit out, and very, very few ever will, then someone else has to.

Proton2233

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Every month we hear news about breaking the stock exchange and wallets. Perhaps now this is the most popular method of earning hackers. It seems to me that it is impossible to defend. But we can reduce the risk. I use a separate computer to access my wallet and never store large sums on the stock exchange.

shakaru

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QUIFAS EXCHANGE

Finance regulators in Japan have ordered month-long suspensions for two domestic cryptocurrency exchanges.

The Financial Services Agency (FSA) said on Thursday that it has issued business suspension orders to two exchanges - FSHO and Bit Station - effective for one month starting from today.

The FSA mandated that seven trading platforms in total must improve their system security measures and submit a written improvement plan by March 22. Those four exchanges are Tech Bureau, GMO Coin, Mister Exchange, Bike Limited as well as Coincheck, the exchange at the center of a recent $500 million heist that sparked the ongoing probe by the agency.

https://www.coindesk.com/japans-fsa-announces-suspension-of-two-crypto-exchanges/

Topic: [2018-03-08] Japanese Regulators Suspend Two Crypto Exchanges (Read 121 times)