· January 29, 2018 · 7:00 am
Coincheck Shows Relief As Regulator Orders ‘Improvements’ After Hack
Japan’s financial regulator has ordered hacked exchange Coincheck to “improve” but appears uninterested in restricting cryptocurrency activities.
FSA: ‘Don’t Do It Again!’
In an order to Coincheck, which to hackers last week, the Financial Services Agency (FSA) of Japan has demanded a full explanation of what went wrong, along with a raft of upgrades for “prevention of similar events in the future.”
Following news that malicious parties had compromised the exchange’s hot wallet, its questionable security practices soon came into the spotlight, with commentators suggesting its setup was insufficient to guard against online threats.
The hack is one of the largest in history, falling nonetheless around $320 million behind the infamous Mt. Gox exchange heist in 2013.
In a Monday, Coincheck sounded palpably relieved:
We earnestly accept the terms of the order and vow to re-examine our business practices while simultaneously striving to make all facts involved in this case clear, discover the root cause of the breach, safeguard our customers, and develop stronger and more effective measures for system risk management and prevention of similar events in the future.
Users Await 90% Token Refund
The FSA’s move comes a week after South Korean authorities six major cryptocurrency exchanges over poor security after an investigation and white hat hack demonstrated similar lapses.
Coincheck must submit a report about the incident by February 13th, but no deadline has yet appeared for it to make good on its promise to of customer funds.
NEM’s XEM token, the main victim of the hack, has since broadly recovered as markets begin moving on from the shock.
For Japan’s consumers, however, the impact of the hack could linger.
Genki Oda, president of fellow exchange BitPoint Japan, Reuters:
I have to admit that all cryptocurrencies will now be tainted in their minds, so there may be a mid-term negative impact.
What do you think about Coincheck’s reprimand from regulators? Let us know in the comments below!
Images courtesy of Pixabay and Bitcoinist archives.
Published at Mon, 29 Jan 2018 12:00:32 +0000
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Funding the Blockchain Future of the Digital Media Industry
, the largest media group in the blockchain and cryptocurrency space, announced the launch of , a venture studio focusing on launching and incubating blockchain applications for the digital media industry on September 25, 2017.
BTC Labs, in turn, introduced Storyboard Ventures, a venture financing arm of the organization, seeded with $2 million to fund forward-thinking and promising media projects. According to BTC Media, Storyboard Ventures will be vigorously searching for those entrepreneurs who are “building use cases that leverage decentralization to disrupt longstanding inefficiencies” within the digital media industry.
“The internet drastically altered how we consume and distribute information, but the media industry has failed to adapt its underlying business model,” Jeremy Kandah, Storyboard Venture’s Portfolio Manager, said in a statement.
“Blockchain technology is revolutionizing the way that digital information is transacted, creating a host of new monetization models and connecting content creators directly with consumers. Storyboard Ventures will support the projects and pioneers shaping this media landscape of the future.”
On November 1, 2017, BTC Labs their second project, the , a decentralized ecosystem for the ad tech industry designed to return lost value to advertisers and publishers. The MAD Network will become the programmatic advertising platform within BTC Labs’ decentralized media suite, a collection of blockchain-based tools for the media industry.
BTC Labs is working closely with the MAD Network to develop its technical architecture, as well as advising them on their upcoming token sale, which will take place on November 30th, 2017.
“The MAD Network is one example of the suite of decentralized media applications that BTC Labs will support through research, development and funding,” Tyler Evans, CEO of BTC Labs, said to bitcoin Magazine. “It is a perfect use case for distributed ledger technology because it takes the value that is traditionally captured by middlemen and brokers in the digital advertising ecosystem and instead, redistributes that value to the stakeholders in the network.”
“BTC Labs has been instrumental in the development of the MAD Network,” Adam Helfgott, Project Lead at the MAD Network, said. “We’ve been able to leverage their breadth of expertise and knowledge in the blockchain space to help formulate our development plan and go-to-market strategy.”
The first project backed by the venture studio was , a protocol utilizing and implementing blockchain technology and timestamped metadata to accelerate solutions for the publishing industry. BTC Labs developed the core architecture behind Po.et and helped guide the organization through a successful token sale process. As bitcoin Magazine is a brand of BTC Media, all content of the publication is verified via Po.et.
Blockchain technology has allowed for increased innovation, resulting in more equitable ways of sharing data and exchangin value. These new benefits of blockchain technology can be also implemented within the media industry to tackle numerous issues, including intellectual property registration, content monetization, licensing, ticketing and ad-tech.
BTC Labs will focus on both the blockchain and media industries with an aim to support disruptive, open-sourced and decentralized networks. It recognizes that, in a decentralized network, every stakeholder can retain the fair value of their work. Thus, the innovation studio will develop decentralized networks to empower not just content creators but also brands and consumers.
Disclaimer: BTC Inc. is the parent company of BTC Media and bitcoin Magazine.
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