Zaif Halts New Memberships
Among the 16 controlled crypto exchanges in Japan, osaka-based crypto exchange Zaif, has suspended signing up new members. “We decided to temporarily stop accepting new membership registration at 21 o’clock on September 28,” Zaif’s operator, Tech Bureau, announced Friday. The company clarified,”Customers who are waiting for enrollment, such as being already in the process of identity verification by applying for membership registration, will enroll as usual as a member,” adding:
We’re responsible for recovering the harm to all customers who were victimized by the current virtual currency outflow, but to do so, [we need] to focus our resources.
Zaif was murdered on Sept. 14 but the breach was not discovered until Sept. 17. The total damage is estimated to be about 7 billion yen (~$62 million). Tech Bureau claims that roughly 5,966 BTC, 42,327 BCH, and 6,236,810 MONA were stolen and casino games gametwist casino. The country’s Financial Services Agency (FSA) has issued the company a third business improvement order.
Bitflyer announced Monday, Oct. 1, a change in the business’s organizational structure. “Today marks the institution of the holdings company, Bitflyer Holdings Inc.,” the firm announced. Bitflyer Inc., which operates Japan’s biggest crypto market,”has turned into a wholly-owned subsidiary of Bitflyer Holdings Inc. by way of a stock transfer.” In a joint announcement, Bitflyer Inc. and Bitflyer Holdings Inc. explained,”Everybody will be able to use our services and transaction just as they always have,” noting:
The purpose for creating a holdings company would be to separate administrative and operational purposes, to describe the duties and obligations of each function, to strengthen corporate governance, and to create a more thorough compliance structureTrueFlip review June 22, Bitflyer Inc. halted new account registrations after it had been issued a business improvement order by the FSA. “In order to maximize our efforts towards building a suitable service and improving on the topics identified, we have voluntarily and temporarily suspended the onboarding of new clients,” the market explains on its website.
With the establishment of the holdings company, Yuzo Kano has resigned as the representative director of Bitflyer Inc. to become the CEO of Bitflyer Holdings Inc.. Nobuyoshi Suzuki from Mitsui Bank Ltd has been appointed the new representative director of Bitflyer Inc..
On Sunday, Sept. 30, Jiji Press reported that the Japan Virtual Currency Exchange Association (Jvcea)”will set a ceiling on the amount of digital currencies managed online,” citing unnamed sources. Members of the association are the 16 controlled crypto exchanges, including Bitflyer and Zaif. The group has registered for accreditation with the FSA to become an organization that can legally enforce self-regulation on its members. The news outlet added that according to the sources:
The ceiling is very likely to be around 10 to 20 percent of customer deposits.
The group has been working on implementing self-regulation and was established in response to Coincheck’s hack in January. With the hack of Zaif, the team”intends to tighten self-regulatory measures it follows on the management of customer assets,” the novel described. The news outlet further detailed that the group”will shortly revise the self-imposed rules, drawn up in July, and implement them once it’s certified by the Financial Services Agency.”
FSA’s Priority Report
The FSA published a report entitled Financial Services Policy: Assessments and Strategic Priorities 2018 on Wednesday, Sept. 26.
The agency revealed that based on data of 14 controlled crypto exchanges and three deemed providers obtained by the Jvcea, 81.6 percent of all crypto trades going through these exchanges are”margin or potential trading.” Meanwhile, 18.4 percent are spot trading. Deemed providers are exchanges that were permitted to operate in Japan while their applications are still being reviewed by the agency Japan now has a total of three deemed providers: Coincheck, Lastroots, and Everybody’s Bitcoin.
In its report, the FSA reveals that it will”Tighten registration screenings and observation, taking account of issues found in reviews,””Review certification applications prepared by self-regulatory associations and invite them to achieve the early establishment of the self-regulating function,” and”Lead the discussion for international cooperation to form regulations as the chair of the G20 in 2019.”
What do you consider the developments in Japan? Let us know in the comments section below.
Images courtesy of Shutterstock, Japan’s FSA, Zaif, and Bitflyer.
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