Japanese Crypto Associations Merging to Restore Trust Across the Industry

Japanese Crypto Associations Merging to Restore Trust Across the Industry

Japan’s two cryptocurrency associations have reportedly decided to merge in order to restore trust in the industry and accelerate self-imposed rules. Once approved by the Japanese financial regulator, the new organization will have the power to set penalties for breaches of self-regulation.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Two Crypto Associations Merging

Japan currently has two cryptocurrency industry associations: the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA). The former is headed by Bitflyer CEO, Yuzo Kano, and has a total of 88 members, while the latter has a total of 154 members, according to Minkabu publication.

Japanese Crypto Associations Merging to Restore Trust Across the IndustryThe two organizations have reportedly been in talks to merge after the hack of one of the country’s largest exchanges, Coincheck, where 58 billion yen worth on the cryptocurrency NEM were stolen. They “are hurried to restore trust in the industry,” Forbes Japan reported.

They “will be integrated to establish a new self-regulating organization,” to focus on areas such as safety management system and compensation of customer assets, the news outlet added. In addition, the new entity will also focus on the reliability of crypto exchanges that have already been approved by the Japanese Financial Services Agency (FSA). Currently, there are 16 approved exchanges and 16 under review, including Coincheck.

On Thursday, Nikkei reported:

Two cryptocurrency industry groups in Japan [JBA and JCBA] have agreed to merge in an effort to accelerate the establishment of voluntary regulations and regain public trust in the aftermath of a massive virtual currency heist.

Set to launch on April 1, “The new organization’s chairman will likely be JCBA Chairman Taizen Okuyama, president of Money Partners Group,” the news outlet detailed, adding that Kano is “expected to become the self-regulatory body’s vice chairman.”

Commenting on the news of its merger with the JBA, the JCBA issued a statement on Thursday, stating that no details have been decided at this time.

Accelerating Self-Regulations

Japanese Crypto Associations Merging to Restore Trust Across the IndustryThe new entity will need the approval of the FSA. Under Japan’s revised payment services law which went into effect in April of last year, cryptocurrency operators are allowed to form a self-regulatory organization. They can “set industry rules, conduct investigations on members, and impose punishment,” the Japan Times elaborated.

However, the FSA previously “refused to allow two self-regulatory bodies, urging the industry to create a unified organization by merging the JBA and the JCBA,” Nikkei explained on Thursday, adding that:

Once the new body is approved by the agency, it will gain the power to set penalties for breaches of its self-imposed rules. This should also help address calls by banks and other businesses in the conventional financial industry for virtual currency businesses to establish a robust self-regulatory regime.

Do you think the merger will help the crypto industry gain more of the public’s trust? Let us know in the comments section below.


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Japan’s GMO to Launch BTC, BCH Cloud Mining Service in August

Japan’s GMO to Launch BTC, BCH Cloud Mining Service in August

Japanese technology conglomerate GMO Internet is about to launch a new cloud offering for mining BTC and BCH. If you have at least $5 million that you want to invest in such a venture, and don’t want the hassle of opening your own mining farm, applications start next month.

Also Read: Coinbase Develops Bitpay Competitor Supporting BTC, BCH, ETH and LTC

Japan’s GMO to Launch BTC, BCH Cloud Mining Service in AugustGMO Internet Group (TYO:9449) has announced the expansion of its recently launched cryptocurrency business with a new cloud mining service, which will be launched in August 2018 if everything goes as planned. The Z.com Cloud Mining service will focus only on two cryptocurrencies based on the SHA256 algorithm, meaning bitcoin (BTC) and bitcoin cash (BCH).

Starting March 1, the company will start accepting priority applications from potential customers who wish to use the new service, and it has already been approached by interested parties. To present the new service to investors GMO Internet will hold information sessions about it in nine major cities across the world, including: Tokyo, New York, Los Angeles, London, Frankfurt, Hong Kong, Singapore, Zurich and Dubai.

The company also explains to green-conscience prospectors that “In terms of power supply, we operate a next-generation mining center utilizing plentiful renewable energy in the region, which has allowed us to secure clean and inexpensive power supply.”

Aiming Big

Japan’s GMO to Launch BTC, BCH Cloud Mining Service in AugustContractually wise, GMO Internet will rent out part of its mining farms equipped with its own next generation 7nm mining chips, as well as manage the facilities, all of which are operated through its European legal entity.

Rather than appeal to small players, the service seems to target bigger businesses who still find it difficult to invest in and manage mining equipment on their own. Customers will pay $5 million (or about 550 million JPY) per contract upfront for a 2 years contract, with no cancellation option and an extra charge to cover operational costs such as electricity, real estate, maintenance, security and more.

“With the cryptocurrency mining business, GMO Internet Group will aim to become No. 1 worldwide in the cryptocurrency service.”

The Tokyo-headquartered conglomerate, comprising more than 60 individual companies domiciled in 10 different countries, first announced its entry to the cryptocurrency mining industry during September of last year. In January, GMO Internet succeeded in developing a 12 nm semiconductor for mining, which was a significant milestone for the group. It is currently working on research and development of its 7nm chip technology.

Is the GMO cloud a good option for more big players to get into bitcoin mining? Tell us what you think in the comments section below.


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Coincheck Produces Recovery Plan While Investors Flock to Withdraw Funds

Coincheck Produces Recovery Plan While Investors Flock to Withdraw Funds

Japanese cryptocurrency exchange Coincheck has submitted a report to the country’s financial authority outlining measures it will take following the hack that lost 58 billion yen worth of the cryptocurrency NEM from its platform. However, customers rush to withdraw 40.1 billion yen of their funds so far as the exchange resumes yen withdrawal service.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Coincheck’s Improvement Plans

Coincheck has submitted a report to the Japanese Financial Services Agency (FSA) as mandated under the Order to Improve Business Operations. The order was handed to the exchange by the FSA following the hack that resulted in the loss of 58 billion yen (~USD$544 million) worth of NEM from its platform.

Coincheck Produces Recovery Plan While Investors Flock to Withdraw FundsIn its report, Coincheck explains key areas of improvement to the agency. Specifically, the exchange detailed four of its plans: “1) investigating the facts and causes surrounding this case, 2) [providing] proper support for our customers, 3) strengthening current measures to manage system risk, 4) creating new measures for system risk management and preventing similar events in the future in addition to making it clear where the responsibility lies for different risks.”

“We plan to continue making meaningful improvements to our system,” the exchange noted, adding:

We are continuing to confirm and improve the security of our systems in order to resume transfers of other cryptocurrencies and begin reparation payments as soon as possible.

Coincheck already provided a preliminary report to the FSA immediately following the hack. The agency then conducted an on-site inspection of the exchange as well as extended the inspections to all other exchanges in Japan.

Customers Rush to Withdraw Funds

Coincheck Produces Recovery Plan While Investors Flock to Withdraw FundsOn February 13, Coincheck resumed Japanese yen withdrawals as previously promised and successfully processed 40.1 billion yen (~$376 million), the exchange confirmed.

Yusuke Otsuka, Coincheck COO, said at a news conference that “the exchange would be able to meet future withdrawal requests,” but “declined to comment on the total amount of customers’ yen still stored at the exchange,” Reuters reported. He insisted:

We have the funds, but we are making individual checks so there are no problems (with repayments).

The exchange has also promised to repay its 260,000 affected customers but has yet to decide on the timeframe. The FSA also has not confirmed that the exchange possesses enough funds to make the repayments.

Meanwhile, seven cryptocurrency traders filed a lawsuit against Coincheck on Thursday at the Tokyo District Court. The plaintiff’s lawyer Hiromu Mochizuki told Reuters that the suit seeks “to allow withdrawals to private wallets…outside the hacked exchange.” He was further quoted by AFP that “Plaintiffs are demanding Coincheck return their cryptocurrencies – 13 different kinds including NEM.”

Do you think Coincheck will be able to repay its customers and regain their trust? Let us know in the comments section below.


Images courtesy of Shutterstock, Cnet, and Coincheck.


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Japanese Crypto Investors Flee Capital Gains Taxation of up to 55%

Japanese Crypto Investors Flee Capital Gains Taxation of up to 55%

Reports have indicated that some investors are relocating in search of alternative taxation regimes in order to avoid heavy capital gains taxes. Japan currently taxes capital gains on profits derived through virtual currency trading at between 15% and 55%.

Also Read: India’s Tax Department Issues Notices to 100,000 Crypto Investors

Japanese Crypto Traders Prepare for Tax Season

Japanese Crypto Investors Flee Capital Gains Taxation of up to 55%Japan’s cryptocurrency traders are bracing for the oncoming Japanese tax season, which runs from February 16th until March 15.

In Japan, all cryptocurrency earnings are required to be reported as ‘miscellaneous income’, incurring capital gains taxation of between 15% and 55% due to virtual currencies being legally classified as ‘property’.

Some traders have criticized the income brackets chosen by the National Tax Agency, with the top bracket applying to payers with an annual income of 40 million yen (approximately 375,000). By contrast, the top bracket is charged only 20% for income derived from foreign exchange or stock market trading.

Japanese Whales Seek Alternative Tax Jurisdictions

Japanese Crypto Investors Flee Capital Gains Taxation of up to 55%The heavy taxes faced by large-scale bitcoin traders has prompted a number of Japanese cryptocurrency traders to explore relocating to jurisdictions offering more lenient taxation on earnings derived through virtual currencies.

According to Bloomberg, the chief executive of Shiodome Partners Tax Corp, Kengo Maekawa, indicated that “a handful of cryptocurrency-rich investors have already left Japan.” Mr. Maekawa stated that his firm has recently experienced a surge in clients in their 30s and 40s seeking tax advice on income derived from cryptocurrencies.

Some traders have also complained that certain aspects of Japan’s present tax requirements regarding bitcoin are unclear. Hiroyuki Komiya, the manager of a Tokyo-based distributed ledger technology consulting firm, stated that “The government hasn’t clarified certain details, so you’re left unsure whether you’ve got it right or not.” Mr. Komiya stated that he was able to reduce his taxable income by “a few million yen” when using an “overall average” rather than a “moving average” when conducting calculations.

What country do you think offer the best tax regime for cryptocurrency traders? Share your thoughts in the comments section below!


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Bank of Thailand Bans Banks From Cryptocurrency Activities

Bank of Thailand Bans Banks From Five Cryptocurrency Activities

The Thai central bank has prohibited financial institutions in the country from five key cryptocurrency activities, including banning customers from buying cryptocurrencies with credit cards.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Banks Banned From 5 Crypto Activities

Bank of Thailand Bans Banks From Five Cryptocurrency ActivitiesThe Bank of Thailand (BOT) issued a circular on Monday asking “financial institutions not to get involved in cryptocurrency transactions for fear of possible problems from the unregulated trading,” Reuters translated.

Mr. Wisit Santiprabop, the central bank’s governor, signed the circular which outlines five key cryptocurrency activities banks are banned from:

Investing or trading in cryptocurrency, exchanging cryptocurrencies, creating platforms for cryptocurrency trading, allowing clients to use credit cards to buy cryptocurrencies, and from advising customers on cryptocurrency investing or trading.

Bank of Thailand Bans Banks From Five Cryptocurrency Activities
Circular explaining five crypto activities banks are banned from.

The central bank stated that “cryptocurrencies were not legal tender in Thailand,” the publication conveyed, adding that “it was worried that they may be used in illegal activities such as money laundering or supporting terrorism.”

Recently, the Thai government announced that it will not ban cryptocurrencies and is developing a regulatory framework for them.

Banks Complying

Bank of Thailand Bans Banks From Five Cryptocurrency ActivitiesMs. Prasanee Auiyamaphan, a Bangkok Bank Executive Assistant, was quoted by Voice TV saying that the bank has “no policy to provide [crypto] exchange services,” emphasizing that cryptocurrencies cannot be exchanged for cash at her bank.

Bank of Thailand Bans Banks From Five Cryptocurrency ActivitiesMr. Thana Thienachariya, Senior Executive VP and Chief Marketing Officer at Siam Commercial Bank said that its subsidiary, Digital Ventures Co. Ltd., has previously formed a strategic alliance with Ripple to offer a payment service between Japan and Thailand. He added that his bank will be discussing this issue with the central bank.

Bank of Thailand Bans Banks From Five Cryptocurrency ActivitiesMr. Thakorn Piyapan, Head of Krungsri Consumer Group and an executive of Digital Banking and Innovation at Bank of Ayudhya said, “although the bank will use the transfer service across the country through Ripple,” it is cooperating with the BOT and “does not provide any [cryptocurrency] services at all.”

He explained that there are some areas that banks need to examine before being able to comply. For example, to prevent customers from buying cryptocurrencies using credit cards, he elaborated:

In Thailand, people are buying digital currency. So the bank is asking for time to check the type of transactions that customers [make when they] swipe cards that are associated with digital currency. If applicable, the bank may have to suspend the service.

Recently, banks in the US and well as the UK have also banned their credit card customers from buying cryptocurrencies.

As for cryptocurrency traders, Poramin Insom, managing director of the Thai crypto exchange TDAX, said that “there is no impact on people who are investors of cryptocurrencies,” the news outlet quoted him. However, he explained, “TDAX is affected by this announcement, which makes the process of opening an account with the bank take longer. Bank of Thailand requests more documents.”

What do you think of the Bank of Thailand’s action? Let us know in the comments section below.


Images courtesy of Shutterstock, Bangkok Bank, SCB, Krungsri, and Bank of Thailand.


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Dubai Issues License to Cryptocurrency Firm

Dubai Issues License to Cryptocurrency Firm

The largest free economic zone in the UAE, with zero percent personal and corporate income tax, has started issuing licenses to firms trading cryptocurrencies. The first license has been issued to a gold trader that has recently started offering cryptocurrency services.

Also read: Japan Cracks Down on Foreign ICO Agency Operating Without License

Attracting Crypto Businesses

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe Dubai Multi Commodities Centre (DMCC) is a government entity established in 2002 to enhance commodity trade flows through Dubai. DMCC Free Zone is the largest and fastest growing free economic zone in the UAE.

“We perform a range of roles which continue to position Dubai as the preferred destination for global commodities trade and DMCC as the world’s No.1 Free Zone,” offering zero percent personal and corporate income tax, the center’s website states. Today, more than 14,100 multinational corporations and startups call DMCC home, with almost 90,000 people living and working there.

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe Centre has started issuing licenses to allow firms trading in cryptocurrencies to operate from its free zone, Thomson Reuters Zawya reported on Monday.

DMCC’s executive director for commodities, Sanjeev Dutta, told the publication that the Centre is “beginning to facilitate” a market in cryptocurrencies which, he acknowledged, is unregulated. Citing that firms looking to set up in the zone would be considered on a “case-by-case” basis, he elaborated:

To me, what is important is the fact that you are still evaluating it as part of your innovation strategy. You are not saying ‘no’ to something. You are not saying ‘yes’ either, but you are exploring, so you are clearly ahead of the others when the time to make a decision comes.

Cryptocurrencies as Commodities

DMCC is a member of the Global Blockchain Council, which began as a Dubai Smart City project and has 46 member organizations globally today. The Centre’s director of innovation hub, Franco Bosoni, said that a global consensus is emerging which favors classifying cryptocurrencies as commodities, the news outlet detailed and quoted him explaining:

DMCC’s view is that these [cryptocurrencies] meet the test of a commodity. They’re priced based on supply and demand, produced and sold globally at a uniform quality and (are) indistinguishable between products.

Wai Lum Kwok, head of capital markets for Abu Dhabi Global Markets Regulatory Authority, told the publication on Sunday that the regulator is “reviewing and considering the development of a robust, risk-appropriate regulatory framework” for crypto exchanges and intermediaries. Emphasizing that no timeframe has been set, he added:

As we develop our framework, we will also want to check in and have the conversations with, for example, US regulators, Japanese regulators and so on and so forth, so that there is some alignment of approach to avoid any regulatory arbitrage.

First License Issued

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe first license for the Free Zone reportedly went to Regal Assets, a gold trader and storage provider with offices in the US, Canada, and the UAE. The company added cryptocurrencies to its product line at the end of last year, offering brokerage services and an insured, high-security cold storage service for bitcoin, ether, bitcoin cash, ethereum classic, ripple, and dash.

According to Bloomberg, “Dubai gold trader Regal RA DMCC is the first company in the Middle East to get a license to trade cryptocurrencies.” The news outlet quoted DMCC acknowledging in a statement, “The company will offer storage of bitcoin, ethereum and other cryptocurrencies in a vault located in DMCC headquarters in Almas Tower in Dubai.”

DMCC Executive Chairman Ahmed Bin Sulayem was quoted by the publication, “At the heart of DMCC’s long-term strategic growth plan is the use of technology and innovation to disrupt and connect new markets, industries and customers,” adding that “the announcement today embodies this approach.”

Do you think more crypto companies will move to this free economic zone? Let us know in the comments section below.


Images courtesy of Shutterstock and DMCC.


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Japan’s DMM Launches Large-Scale Cryptocurrency Mining Farm and Showroom

Japan's DMM Launches Large-Scale Domestic Mining Farm and Showroom

Japanese entertainment giant DMM has launched its “large-scale Japan-quality” mining farm, with a plan to deploy more farms overseas. DMM is also launching a showroom, allowing the public to tour its mining farm, as well as a mining pool.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

DMM’s Mining Farm in Japan

DMM Inc, the operator of popular e-commerce site DMM.com with 27 million members, announced on Friday the launch of its mining farm in Kanazawa City, Ishikawa Prefecture, Japan. The company stated:

DMM operates large-scale ‘Japan-quality’ mining farms that are unparalleled in scale compared to other domestic operators…By establishing a mining farm in the cold district, we realize low price electricity procurement and maximize mining revenue.

Japan's DMM Launches Large-Scale Domestic Mining Farm and Showroom
DMM’s mining farm in Kanazawa City, Ishikawa Prefecture, Japan.

Japan's DMM Launches Large-Scale Domestic Mining Farm and ShowroomIn addition, the company revealed that its mining farm “has also been turned into an open showroom for our customers to access.” The showroom will display 1,000 mining rigs. “We are aiming to open this showroom from the beginning of March,” DMM wrote, adding that “we plan to start acceptance from the middle of March for tours for the general public.”

Following the launch in Japan, the company plans to deploy additional mining farms overseas. “By starting domestically, DMM’s engineering team is directly involved in the operation to secure quality and win the trust of domestic users,” Fuji Television Network described.

DMM’s Mining Rigs

DMM has installed in its mining farm both types of mining rigs, ASIC and GPU, allowing the company to mine many different types of cryptocurrencies. DMM’s “ASIC machines purchased [were] made in China,” the TV station noted. “The ASIC machines are 650 MH/s (mega hash/sec), and the GPU machines are about 300 MH/s or less.”

Japan's DMM Launches Large-Scale Domestic Mining Farm and Showroom
DMM’s ASIC and GPU mining rigs.

The news outlet further noted that “the power consumption is 750W for ASIC and 1900 to 2000W for GPU,” adding that the GPU mining rigs have twelve GPU cards connected to two power supplies.

Japan's DMM Launches Large-Scale Domestic Mining Farm and Showroom
DMM’s GPU mining rig with 12 GPU cards and 2 power supplies. (Photo\Fuji TV Network)

DMM says it will mine several types of coins, including bitcoin, ether, and litecoin. “We are not particular about bitcoins,” the leader of the DMM mining laboratory Shinichi Takaguchi told Fuji TV, but emphasized that “Of course we are also mining bitcoins” alongside other coins. Depending on the market environment, he reiterated that the lab will mine all the cryptocurrencies that are most profitable at the time, adding that:

In the future, we plan to start managing our own DMM [mining] pool, and plan to develop cloud mining that allows general users to purchase mining rights around summer.

DMM has also recently launched its own cryptocurrency exchange, supporting 7 different cryptocurrencies and 14 trading pairs, as news.Bitcoin.com previously reported.

What do you think of DMM’s mining farm? Let us know in the comments section below.


Images courtesy of Shutterstock, Fuji TV Network, and DMM.


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Japan Cracks Down on Foreign ICO Agency Operating Without License

Japan Cracks Down on Overseas ICO Agency Operating Without a License

The Japanese financial regulator will be issuing its first warning since the legalization of cryptocurrencies as a method of payment in Japan. An overseas initial coin offering agency has reportedly been attracting Japanese investors without a license, repeatedly ignoring the agency’s advice to cease operating in the country.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

FSA’s Warning

Japan’s Financial Service Agency (FSA) will issue a warning to an unregistered initial coin offering (ICO) agency, which has been conducting business in Japan without a license, Nikkei reported. The news outlet elaborated:

The warning will be issued to Blockchain Laboratory, based in Macau. The agency has decided the company’s activities could cause investors to incur losses. The FSA will work with the police and the Consumer Affairs Agency to bring criminal charges if the company fails to respond to the warning.

Japan Cracks Down on Overseas ICO Agency Operating Without a LicenseHeadquartered in Macau, “Blockchain Laboratory operates as an initial coin offering agency to raise funds using cryptocurrencies,” the publication described. The company’s activities include cryptocurrency and ICO consulting services and conducting seminars to attract investors.

The FSA has repeatedly advised the company to “halt its business activities in Japan, without success,” the publication detailed. According to the officials of the agency, the FSA “will warn the company directly, and name it on the FSA’s home page.” If the operator still fails to comply, criminal charges will be filed.

License Needed to Operate in Japan

Japan Cracks Down on Overseas ICO Agency Operating Without a LicenseSince the revised payment services law went into effect in April of last year, Japan has recognized cryptocurrencies as a legal method of payment. The law also requires crypto exchanges to register with the FSA. It “allows only registered operators, or those that have applied for registration, to operate in Japan,” Nikkei emphasized.

The warning to Blockchain Laboratory will be the FSA’s first under the revised payment services law. “The move is part of the FSA’s more aggressive scrutiny of the activities of unregistered operators in Japan,” the news outlet conveyed, adding that:

The revised law prohibits such unregistered exchanges from operating and soliciting in the country.

Currently, there are 16 cryptocurrency exchanges with a license to operate in Japan and another 16 are under review, including Coincheck which suffered a loss of 58 billion yen (~USD$533 million) in a recent hack.

In a recent interview with news.Bitcoin.com, Bitflyer CFO Midori Kanemitsu said:

Now people understand that they need to use safe exchanges, which are registered with FSA and have a high standard of security.

What do you think of the FSA’s action? Let us know in the comments section below.


Images courtesy of Shutterstock and the FSA.


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Coincheck Announces JPY Withdrawals Will Resume Next Week

Coincheck Announces JPY Withdrawals Will Resume Next Week

This Friday the Japanese exchange Coincheck has announced the resumption of yen (JPY) withdrawals will begin next week. The news follows the trading platform halting operations on the 26th of January. That day Coincheck was hacked and lost a total of 523,000,000 XEM, but the exchange promised to pay back the 260,000 customer accounts that were compromised. JPY withdrawals will be enabled for the trading platforms users beginning February 13, 2018.

Also Read: Japanese Crypto Exchanges Strengthen Self-Regulation Following Coincheck Hack

Coincheck Plans to Resume JPY Withdrawals Next Week

Coincheck Announces JPY Withdrawals Will Resume Next WeekAccording to the Japanese exchange Coincheck, the platform will resume yen withdrawals next week. The exchange says that a temporary suspension of JPY operations was put in place to protect the assets of Coincheck customers. The company says that “outside experts” are working with the trading platform to ensure withdrawals are ready for February 13th. Right now Coincheck reveals customer assets are being held by another party.

“Currently, all customer JPY assets are being stored in a customer-specific account in a major financial institution,” explains the Japanese exchange.  

We plan to resume normal operations for JPY withdrawals from the following date and will process customer requests in the order in which they come in.         

The Resumption of JPY Withdrawals Is Unrelated to XEM Reparation Payments

Coincheck Announces JPY Withdrawals Will Resume Next Week
Coincheck says the JPY withdrawals are unrelated to the NEM/XEM restitution.

Coincheck also notes that the withdrawals of JPY and the date mentioned is completely “unrelated to reparation payments for the XEM.” Just before the first of February Coincheck had announced that approximately 260,000 affected accounts ($423Mn USD) would be reimbursed. Balances will be repaid in JPY via the Coincheck Wallet the firm has stated and will be valued at approximately $0.81 USD per token. At the moment that price is much more than the current rate XEM tokens are being sold for as the spot price is $0.56 per coin.   

Withdrawal requests will be initiated on a first come — first serve basis, and Coincheck says the company may contact certain customers separately in order to confirm withdrawal details. As far as cryptocurrencies operations are concerned the exchange plans to lift withdrawal restrictions as soon as the company feels they are “able to guarantee the secure resumption of operations for each feature.”     

“If further complications preventing the safe resumption of withdrawals are discovered, the resumption date may be extended in order to guarantee customer asset security,” Coincheck concludes.

What do you think about Coincheck preparing to resume operations after the recent hack? Do you think the exchange will fulfill its promise to pay back the XEM at $0.81 per coin? Let us know your thoughts on this story in the comments below.


Images Shutterstock, Coincheck and the NEM/XEM logo. 


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