Hong Kong exchange delists securities tokens

Gatecoin, a Hong Kong cryptocurrency exchange, is to delist tokens with security properties
10 October 2017   1533

Gatecoin, a Hong Kong cryptocurrency exchange, has announced the plans to delist all tokens that double as securities.

Thus, according to the company, the exchange is "currently awaiting the results of a regulatory compliance review by the legal advisors on the legal status of specific tokens" that the company have listed on the exchange. "The review will determine whether a token that we have listed fits the category of a security under the Hong Kong Securities and Futures Ordinance, and if so whether the token founders have taken steps to structure their token in accordance with the SFC’s framework", - Gatecoin team details. 

As reported, the tokens categorized as securities will be delisted from Gatecoin. Once the company has confirmed which of these tokens are to be delisted, clients will have one week to trade their tokens for Bitcoin (BTC) or Ether (ETH). After this period, both trading and deposits of that token will no longer be available through Gatecoin exchange.

Yet, Gatecoin will still be able to store the delisted tokens in the wallets on behalf of clients that maintain balances after trading and deposits have been disabled. Clients continuing to hold balances in these delisted tokens will be provided with a one-month period to withdraw these funds from their Gatecoin accounts.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   83

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.