After the hacking of Coincheck, Japanese regulators have stepped up and started security checks all around the country's exchanges. One of the exchanges affected by this crack down was GMO, who, while not halted outright by FSA, was ordered to increase customer security to acceptable levels. And now GMO asks its clients to loan it their Bitcoins.
On paper, the program works flawlessly. GMO will be able to enter loan agreement with its customers with the starting sum of 10 BTC all the way up to 100 BTC. Once the agreement is reached, the customer's balance will be deducted. The loan period is 90 days, but the customers will be able to return their funds before the 90 days are over, with a cancellation fee, of course. The loans held for a full three-month period will be repaid with interest. The downside of the program, according to the reports, is that customers won't be able to sell or transfer their Bitcoins during the loan period.
As of now, GMO hasn't revealed, how it plans to use the Bitcoins acquired in the program. And it's quite worrying for the community, who can't help drawing parallels with Coincheck, who has been dabbling in the similar venture before they got hacked and lost all their money.