Japanese FSA to Change Exchange Regulations

Coincheck hack forced FSA to tighten crypto regulation
03 July 2018   535

The Japanese Financial Services Agency (FSA) is considering the possibility of changing the legal and regulatory framework for controlling exchange operations with bitcoin and other cryptocurrencies, Сointelegraph reports.

In particular, the FSA is considering the issue of regulating crypto exchanges in accordance with the Financial Instruments and Exchange Act (FIEA), instead of the currently used Payment Services Act. This means that exchanges will have to provide more reliable protection of customers. FIEA obliges financial companies to manage clients' funds and securities, such as shares, separately from corporate assets.

According to the current legislation, cryptocurrencies are legally positioned as the same means of payment as electronic money. If FSA starts to regulate exchanges within FEIA, crypto assets will be treated as a financial product. FIEA will also open the possibility of introducing cryptographic derivatives, such as exchange-traded funds (ETFs).

Coincheck hack forced FSA to tighten crypto regulation. After this incident, FSA began to investigate the activities of 15 unregistered exchanges, revealing a number of security flaws and regulation of business transactions.

Pure Bit to Refund Investors' Money

Another cryptocurrency scam storu may have happy ending
15 November 2018   93

The founders of the South Korean exchange Pure Bit, who were suspected of stealing investors' money, announced the return of funds.

According to the local edition of BlockchainROK, representatives of the exchange have already partially returned the money to some users and pledged to return all other funds.

On November 4, the exchange team launched the ICO with the goal of collecting about $ 30 million to create a crypto exchange. However, on November 9, Pure Bit closed the site, said goodbye to its investors and removed everyone from the group in the KakaoTalk messenger. Also, the founders of the exchange withdrew funds from the account that was used for ICO.

According to CCN, one of the issues traced the Ethereum address of the exchange and asked Upbit to block the account and freeze the funds. Upbit fulfilled this request.

This is Pure Bit. First off, I would like to apologize to everyone that was affected by the ICO. Since November 5, I raked in 16,000 ETH and did not open a crypto exchange as promised. I kicked out everyone in our social media chat groups and disappeared without any message. I negatively affected investors in the project psychologically and financially. I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation.

CEO of Pure Bit

The founder of Pure Bit also notified that he would return ETH 16,000 to depositors without taking into account the payment of services to a third-party company that organized ICO.