Japanese Watchdog to Check Exchanges After $500M Stolen

The Financial Services Agency of Japan will check local exchanges after Coincheck hack
29 January 2018   534

The Financial Services Agency of Japan (FSA) will begin checking the rest of the country's bitcoin exchanges after Friday's hack of Coincheck. This is reported by Nikkei.

In addition, the FSA commissioned Coincheck to submit by February 13. report on the incident and develop measures to avoid its recurrence. It is also possible that Coincheck will be fined, the size of which remains unknown.

According to the publication, FSA will also conduct inspections of other exchanges.

In April 2017, Japan obliged operators of cryptoexchanges to pass state registration, allowing existing platforms, including Coincheck, to continue working before obtaining a license. At the moment, such licenses are owned by 16 exchanges.

On Friday, January 26, Coincheck suspended operations with the digital currency NEM (XEM), and then with the other altcoins. Payments with bank cards and Pay Easy were also suspended. Later, representatives of Coincheck confirmed the theft of 58 billion yen ($ 533 million) in the NEM (XEM) crypto currency.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.