Coincheck submits 2nd biz improvement plan

March 23, 2018

Tokyo- Major Japanese cryptocurrency exchange operator Coincheck Inc. submitted its second business improvement plan to the Financial Services Agency on Thursday, in the wake of a hack that stole the NEM digital currency worth 58 billion yen from the exchange in January.

According to the plan, Coincheck will overhaul its customer protection measures and management system, and terminate handling of virtual currencies at high money laundering risk.

The company also announced resumption the same day of the execution of withdrawal and sell orders in cryptos Lisk and Factom, which was suspended after the massive hacking.

Although the exchange plans to defreeze other currencies upon confirmation of the safety of their trading systems, it will refrain from resuming offering Monero, Zcash, Dash and Augur currencies due to money laundering concerns, informed sources said.

Meanwhile, the FSA has decided to issue a second warning to Hong Kong-based cryptocurrency exchange Binance over its unregistered operation in Japan and poor measures against money laundering, sources said on Thursday.

On March 8, the FSA issued business improvement orders to Coincheck and six others, following its on-site inspections of domestic cryptocurrency exchanges, in response to the January incident. Two of the exchanges other than Coincheck were also slapped two-month business suspension orders at the time.

The six, including Tech Bureau Corp., also submitted business improvement plans to the regulator on Thursday. Jiji Press