Japanese Crypto Exchanges Set to Learn Lessons from Coincheck Hack

After the hacking of Japan’s biggest crypto exchange Coincheck, Cryptocurrency exchanges there are now improving their self regulation procedures. Although the Japanese Financial Services Agency is yet to approve Coincheck’s registration as a crypto exchange, it is reinforcing its controls to fend off hackers.

The Japan Blockchain Association (JBA) has earlier set up self regulation standards that the members of Cryptocurrency exchange have willingly accepted. The hack of Coincheck led to an estimated 58 billion Yen in losses on its platform.

The JBA has 127 members on its roll; 15 members are crypto exchange members and 35 are blockchain members. Some of the notable crypto exchanges that are members of the JBA include BitFlyer, Coincheck, GMO Coin, Bitocean and others. The CEO of BitFlyer Yuzo Kano is the association’s representative director.

The association disclosed that the Japanese Financial Services Agency (FSA) has informed the representatives of each Cryptocurrency exchange regarding their security. “We are looking for further measures,” the JBA stated.

Crypto exchanges have been told to “check the status of their security based on the possibility of cyber attacks.”

The umbrella body of block chains is seeking to strengthen security in order to prevent the kind of massive theft that happened with Coincheck.

This comes on the heels of a news report on the Japan Times that the country’s Financial Services Agency had prior to Friday’s attack advised Coincheck to put in place stringent security measures.

Reuters reports that the FSA has instructed Coincheck to submit an incident report as well as measures it will take to prevent further breach of its security in the next two weeks.  The Tokyo Metropolitan Police Department is said to be preparing an investigation into Coincheck’s recent hack.