TOKYO, JAPAN - Media OutReach - 21 September 2018 - For people who operate at the Zaif cryptocurrency exchange, they might be wrapped in sorrow and anxiety. In the past, the Zaif exchanges suffered hacking damage, illegal outflows from users' hot wallets worth 4.5 billion yen, from the inside 2.2 billion virtual currencies leaked illegally, total damage amounted to 6.7 billion yen.
It can be said that this year is the worst year of the Japanese cryptocurrency exchange industry. Coincheck, one of the biggest cryptocurrency exchanges in Japan, suffered hacking damage in January, causing a cryptocurrency outflow incident of 58 billion yen. Currently, security issues of mainstream exchanges in Japan should be emphasized.
In this situation, a new way of protecting users is recommended.
Here is new advice on cryptocurrency exchange user protection.
First, the introduction of a reliable cryptocurrency exchange in terms of security. From the case of Zaif's loss case, I realized that it is necessary to strengthen the regulation. According to CoinMarketCap's data, Zaif is not a large-scale exchange in the world, it is ranked 101th in the world. In order to provide superior service to customers, it is necessary to introduce a cryptocurrency exchange that can be trusted in terms of security in the world. Currently, such exchanges are striving to enter Japan. For example, the world-class Huobi Exchange has advanced into the Japanese market by acquiring Japanese registered cryptocurrency exchange BitTrade. Huobi was founded in 2013 and currently has a compliance team in more than 10 countries including the United States, South Korea, Vietnam, Singapore, Brazil, Australia, the UK, Canada, and so on. We provide services to millions of users worldwide and have never had any security issues Huobi will energize the market and contribute to user protection.
Second, insurance coverage. Since it is an authorized cryptocurrency exchange, it is possible to secure assets of users via insurance companies. In the case of a hacking incident, cooperate with an insurance company so as to secure the user's assets. Even for insurance companies, they earn great profits.
Third, establishment of user protection fund. Establishing a user protection fund jointly by Japanese exchanges or led by the Financial Services Agency or other government departments may also be an effective way to protect users.