Japanese Crypto Exchange Error Let Buy Bitcoin for Free

An error at a Japanese cryptocurrency exchange let investors buy bitcoins for free, but none were able to profit from the mistake
21 February 2018   1443

Zaif, a government-registered exchange run by Osaka-based Tech Bureau Corp, said on Tuesday that a system glitch had let seven customers buy bitcoin with no yen value during a 20-minute window last week.

The exchange voided the trades after discovering the error, which happened on February 16 - though it was still trying to resolve the issue with one customer who tried to transfer the knock-down bitcoins from the exchange, a spokesman told Reuters.

Zaif’s operator had already faced checks after last month’s theft of $530 million in cryptocurrency from Coincheck, with regulators fearing its systems were at risk from cyber-attacks.

Zaif is one of 16 exchanges registered with the government, which last year allowed a further 16 - including Coincheck - to continue operating pending full registration.

It is said that the registered exchanges will form a self-regulatory body from April. They had originally planned to merge two existing industry bodies representing both registered and unregistered exchanges.

The body will set out rules on issues like exchange security and advertising, and will lay out penalties for members who don’t follow the policies, the Nikkei business daily reported on Wednesday.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   123

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.