First bank-backed crypto exchange opens doors in Japan

Japanese financial conglomerate SBI Holdings has officially launched a crypto currency exchange, becoming the first banking institution in the world to enter the crypto market.

SBI first announced its intention to enter the crypto market in October 2016. In September 2017 the bank received a license form the Financial Services Agency (FSA), Japan’s financial regulator, but decided to postpone the official launch of the exchange because of security considerations in the aftermath of the theft of some 530 million USD from the Tokyo-based exchange Coincheck in January.

They’re doing their best to make cryptocurrencies mainstream in the country, aren’t they?

Yup, and getting more progress on the regulation front too:

The regulatory framework also suggests limited margin trading borrowing:

They’re making moves!

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It’s really not surprising that Japan is the first country to do that, they’re always leading in any digital developments.

Yep, not surprising at all, they are quite good at “predicting” the future. After all, if the rumors are true, the creator of Bitcoin is from Japan. Probably other countries will follow their example.

Hopefully they have improved their security measures too.

Hi, mlawson71. Which security measures do you mean?

I’m thinking things like network security, website security, end user security, requiring multi factor authentication, educating customers on security best practices. Cold storage. Distributed client funds storage. Multiple approvals to do things like place trades, perform withdrawals and deposits, transfers, etc. All those things that make getting hacked or client funds stolen harder.

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Thanks, I couldn’t have put it better.
Right now cryptocurrency exchanges have proven time and again that they are not secure enough, although they seem to be improving.

Ah, I see. Well, that makes sense. I am not sure why they are so insecure right now, perhaps the initial plan was meant to be like that or it is because the interest towards them increased drastically and there wasn’t enough time for proper security measures to be implemented. Although, in my opinion the digital world could never be entirely safe and secured.

I have no idea either, I’m a trader, not a coder. :smiley:

That’s right, not astounding by any means, they are very great at “foreseeing” what’s to come. All things considered, if the bits of gossip are valid, the maker of Bitcoin is from Japan. Most likely different nations will take after their case.

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So I’ve heard too.
As for Japan, it’s always at the forefront of any digital innovations, it’s no surprise they’re doing it with cryptocurrencies too.

The Japanese cryptocurrency exchange Zaif got hacked today and hackers stole $59 million.
According to the report, the hackers stole 5,966 Bitcoins, some Bitcoin Cash, and MonaCoin.

Cryptocurrencies worth 4.5 billion yen have been stolen from the users’ hot wallets, and 2.2 billion yen from the company funds. Thus, total losses amount to 6.7 billion yen or around $59.7 million.

How disappointing.

Oh wow, that is a huge steal! And they discovered it four days later… @mlawson71, you had a good point mentioning the security issues, obviously no improve has been made. I feel bad for the robbed users.

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If cryptocurrencies are to become mainstream - if they are to take the place of regular currencies, these things simply cannot and should not happen.

Imagine if we heard about banks being hacked and robbed every other month.

Japan is going full speed ahead with implementing blockchain technology in the mainstream despite the cryptocurrency exchange hacks.

They are about to become the first major market to use blockchain for money transfers after later this month three Japanese banks will start offering free money transfers via a mobile app using the technology.

The app was approved by the Japanese ministry of finance last week and is expected to help reduce the use of cash in the Japanese economy, which currently accommodates about 80% of all transactions.