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Piracy may lead to on-site inspections of other Japanese exchanges

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The Japan Financial Services Agency (FSA) said it could carry out on-site inspections of other cryptocurrency exchanges The coincheck of the week.

Japanese regulators can inspect other trade in the wake of Hackcheck

The FSA, the regulator that oversees cryptocurrency trading in Japan, made the announcement at a press conference Monday, according to a Reuters report.

As CCN reported, Coincheck's hacking, which was confirmed on Friday, would have been the biggest cryptocurrency swap in history, eclipsing even the infamous Mt. Flight of Gox.

Because Coincheck kept most of its funds in "hot wallets" connected to the Internet rather than in cold, more secure, off-line portfolios, the hacker could steal about 523 million XEM – the native token of the NEM network – worth $ 530 million at the time of the flight.

The severity of the robbery has left many wondering if the FSA would strengthen its oversight of the country's other cryptocurrency trading platforms, and the revelation that it could conduct on-site investigations in the US. other scholarship seems to confirm that she will.

In addition to intensifying its surveillance of the fledgling cryptocurrency industry, the FSA also ordered Coincheck to improve its security policies and submit a report detailing the reason for this hacking and the steps to take to prevent it from happening again. The exchange must fulfill these obligations by February 13th.

Coincheck to partially repay customers, and NEM will not fork

Coincheck also said that the intention to partially repay 260,000 customers who lost funds as a result of the hack. In total, the stock market will pay 46.3 billion yen at 88.549 yen per XEM, a decrease of about 20 percent from 58 billion yen in stolen funds. However, the company has provided a detailed payment plan for this compensation.

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Notably, although the hack appears to have been isolated from Coincheck's NEM wallet, the NEM Foundation has stated that it will not lead a hard fork to recover the stolen funds. Rather, he has created an automated system that will track and "tag" stolen XEM tokens so that exchanges and other currency converters can identify them and deny pirate service.

Image from Shutterstock.

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