Coincheck to become first Japanese crypto exchange to list on Nasdaq

Japan’s Aozora Bank Plans Digital Currency LaunchGMO Aozora Net Bank, a Japanese commercial bank and a member of a Japanese corporate consortium comprising over 100 members, has unveiled plans to introduce a blockchain-based digital currency known as DCJPY.Photo by David Edelstein on UnsplashDCJPYAccording to Reuters, the blockchain-based digital currency is scheduled for launch in July of the upcoming year. DCJPY will be a Japanese yen-based stablecoin, underpinned by deposits and harnessing blockchain technology to enable instantaneous and seamless transactions. Unlike conventional transfer methods that rely on a bank’s data system, DCJPY circumvents this process via a blockchain network, leading to a reduction in associated costs.Efficient inter-company paymentsThe primary objective of Aozora Bank’s venture is to streamline payments between businesses. The incorporation of blockchain technology offers a secure, transparent, and efficient transaction framework. By adopting this digital currency, companies can experience the advantages of swift settlements while concurrently mitigating the financial outlays tied to traditional banking systems.This consortium recognizes the vast potential of blockchain technology and is seeking to harness its inherent benefits to enhance diverse business operations. With the upcoming launch of DCJPY, the consortium will effectively be promoting the use of blockchain-based digital currencies within Japan and catalyzing innovation within the financial sector. The project has the potential to bring about heightened efficiency, cost reductions, and an overall enhancement in the realm of financial transactions.Banking heavyweightsThis move by Aozora aligns with the global surge in interest and adoption of blockchain technology. The bank operates as a prominent member of a broader consortium, which encompasses a multitude of Japanese corporations. The consortium includes major players in Japanese banking, including Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group, and Sumitomo Mitsui Financial Group. It has been meeting frequently to assess ways in which it can build a common settlement infrastructure for digital payments.MUFG is already deeply involved in blockchain-based innovation. The banking group has established its very own Progmat blockchain tokenization platform, which includes the Progmat Coin stablecoin platform.Last month, the bank announced a partnership with Binance which will endeavor to investigate the issuance of public blockchain stablecoins based on the Japanese yen. MUFG’s Progmat includes Mizuho as one of its clients on the blockchain platform.Stablecoin regulationThese recent announcements and Aozora Bank’s stablecoin plans follow the passage of a bill by Japan’s parliament earlier this year that restricts stablecoin issuance by non-banking institutions. The bill stipulates that only licensed banks, trust companies, and registered money transfer agents are permitted to issue stablecoins. Furthermore, it establishes a registration system for financial institutions planning to launch such digital assets, accompanied by anti-money laundering measures.A report published by Nikkei Asia earlier this year suggested that three Japanese banks, namely Shikoku Bank, Tokyo Kiraboshi, and Minna Bank, had all expressed the intention to issue stablecoins. In June, Japanese global information technology solutions company Fujitsu announced that it intended to launch a blockchain-based platform in conjunction with the Asian Development Bank.

28 crypto service providers register with India’s FIUIn India, 28 entities providing services related to virtual digital assets (VDAs) have successfully registered with the Financial Intelligence Unit (FIU), the body responsible for combating money laundering in the world’s most populous country.Notable names in this list include Neblio Technologies, more commonly known as CoinDCX, Zanmai Labs, the company responsible for the WazirX crypto platform, Bitcipher Labs’ CoinSwitch, Nextgendev Solutions and Awlencan Innovations India’s Zebpay.Photo by Big G Media on UnsplashA need to register as ‘reporting entities’This information comes in response to a question posed in the Lok Sabha (India’s lower house of Parliament), where the government emphasized the significance of these entities complying with the Prevention of Money Laundering Act (PMLA). In March, the government had formally designated companies dealing in VDAs, crypto exchanges and related intermediaries as “reporting entities” under the PMLA.According to the notification, crypto exchanges and their intermediaries are obligated to conduct Know Your Customer (KYC) procedures for their clients and platform users. This includes maintaining KYC details, identity documents, account files and business correspondence records with clients.Offshore exchanges required to registerMinister of State for Finance Pankaj Chaudhary mentioned that the registration process for VDA service providers catering to the Indian market is underway. Non-compliance with these regulations may result in appropriate action under the PMLA. It has been clarified that offshore crypto exchanges operating in India are required to adhere to these guidelines. Despite that, none of the 28 entities who have registered so far appear to be offshore companies.Commenting on the development via the X social media platform, Sumit Gupta, Co-Founder of CoinDCX, wrote:”Emphasizing compliance to PMLA is vital for the safety and financial integrity of Indians, as dealing with non-registered platforms exposes citizens to nefarious actors, putting their finances at risk.” . . . “It’s encouraging to witness the Government initiating actions against non-compliant offshore entities.”While steps to provide guidelines for the industry are largely positive, the Reserve Bank of India (RBI) has been vocal in its criticism of cryptocurrencies and calls for potential bans have cast a shadow over the industry in India. The recent collapse of prominent platforms like FTX have not been helpful, only serving to exacerbate concerns relative to India’s crypto ecosystem.The negative sentiment, coupled with an ongoing funding winter, has resulted in the closure of operations for some crypto platforms, including Pillow and WeTrade, this year. Firms like CoinSwitch and Gupta’s CoinDCX have had to reduce headcount in 2023 amid challenging market conditions.Despite these challenges, there are also positive signs. A recent report by blockchain analytics firm Chainalysis found that India has been the frontrunner more recently in terms of crypto adoption in Asia.This latest development provides guidelines where anti-money laundering processes are concerned for crypto firms in India. However, the government needs to follow through with a complete regulatory framework for the industry. The Indian courts recently declined to act on such a petition on the basis that it falls within the remit of the country’s legislature and is outside the purview of the courts.

Hot Wallet Exploit Results in $23M Bitrue LossBitrue, a Singapore-based crypto exchange, has fallen prey to a $23 million hack due to a hot wallet exploit. The exchange has been forced to suspend all withdrawals until April 18, to provide an opportunity to conduct a thorough security review.©Pexels/Karolina GrabowskaHot wallet vulnerabilityHot wallets are used by exchanges to store small amounts of cryptocurrencies for easy access. These wallets are connected to the internet and are therefore more vulnerable to attacks compared to cold wallets, which are stored offline. In the case of Bitrue, hackers were able to exploit the hot wallet and steal cryptocurrencies worth $23 million.In a series of Twitter posts, the exchange outlined that the exploit occurred at 07:18 (UTC) on Friday. “We were able to address the matter quickly and prevented the further exploit of funds”, it went on to state.The stolen digital assets include ETH, QNT, GALA, SHIB, HOT and MATIC. Bitrue outlined that the hot wallet funds account for only 5% of overall funds and that the rest of its wallets remain secure and have not been compromised.Blockchain security firm PeckShield outlined how the funds were swapped and drained. A wallet it has labeled as “Bitrue drainer” swapped 173,000 QNT, 22.55 billion SHIB tokens, 46.4 million GALA and 310,000 MATIC for 8,540 ETH. The ether is now being held within the following address:0x1819EDe3B8411EbC613F3603813Bf42aE09bA5A5Reimbursing usersIn response to the hack, Bitrue has promised to reimburse all affected users. However, the process could take some time.The incident underscores the importance of taking precautions when storing cryptocurrencies on exchanges. Users should only keep a minimal amount of cryptocurrencies on an exchange and should not store more than they can afford to lose. Ongoing exploits, hacks and frauds exemplify the need for users to only use reputable platforms with a proven track record of security.Doubling down on securityBitrue has promised to improve its security measures to prevent similar incidents from occurring in the future. The exchange’s response to the hack has been lauded by many in the cryptocurrency community, who have praised the company’s transparency and commitment to reimbursing affected users.The cryptocurrency community has been vocal in its criticism of exchanges that fail to prioritize security. The Bitrue hack is just the latest in a series of incidents that have highlighted the importance of maintaining security in the world of cryptocurrency.It’s not the first security breach that the exchange has encountered. In 2019 Bitrue suffered a $4.7 million loss, with quantities of both XRP and Cardano (ADA) having been stolen. On that occasion, the exchange released tracking details relative to the stolen funds. Thanks to collaboration with Huobi, Bittrex and ChangeNOW, the funds and associated accounts were frozen.According to data from CoinGecko, Bitrue trades an average of $1 billion in digital assets daily, with bitcoin and ether trading pairs accounting for a large proportion of that trading volume. The Bitrue hack has been a wake-up call for the cryptocurrency community and serves as a reminder of the ongoing risks associated with storing cryptocurrencies on exchanges.