Japanese Crypto Exchanges Required to Strengthen Security

Minister of Finance of Japan, Taro Aso, requested cryptocurrency exchanges to strengthen cybersecurity following the $530 million hack of XEM from Coincheck exchange
31 January 2018   883

Speaking to reporters after the Cabinet meeting, the Minister of Finance required the strengthening of management systems at domestic cryptocurrency exchanges, calling regulators to monitor the ecosystem in order to protect consumers.

In his opinion, illegal access, which caused a massive outflow of cryptocurrency from Coincheck is a great regret. He also believes that the Financial Services Agency should subject mandatory control to cryptocurrency traders in order to protect users.

A balance is needed between the promotion of innovation and the protection of consumers on cryptocurrency exchanges.

Previously, Taro Aso criticized the excessive regulation of cryptocurrency.

The comments of the Minister of Finance followed FSA’s statement on Monday. The regulator said that the investigations of all exchanges of cryptocurrencies, including on-site inspections, are necessary, and ordered to improve Coincheck's cybersecurity.

As previously reported, Coincheck executives confirmed that they stored currency in a hot wallet, which was compromised.

Unlike cold wallets, hot ones are subject to unauthorized access.

After the hack, Coincheck president Koichiro Wada said that it was difficult to manage cold wallets for technical reasons.

On Monday, Japan’s primary financial diplomat Masatsugu Asakawa noted that the regulation of the cryptocurrency will most likely be discussed in March among the G20 finance ministers and central bankers in Argentina.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   106

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.