TOKYO (Reuters) – Japan’s Line Corp plans to launch a cryptocurrency exchange, a progress that begins as regulators study such exchanges in the country after hackers stole $530 million in virtual money from Coincheck in one of the world’s biggest cyberheists.
Plans to launch cryptocurrency exchange facing concerns of hacking
Line announced in a statement on Wednesday that it has applied to Japan’s financial regulator to run an exchange, with the request under review.
Japan’s Financial Services Agency, which oversees registrations of new exchanges, said on Monday it would investigate all cryptocurrency exchanges in Japan for security gaps after the hack at the Coincheck exchange.
The theft on Friday of 58 billion yen ($532.84 million) of NEM coins from Coincheck has highlighted the security vulnerabilities in exchanging an asset that global policymakers are striving to regulate.
Cryptocurrency trading in Japan has soared in the last year, with the country’s army of retail traders emerging as a major force in bitcoin’s sensational rally.
The country’s global share of the bitcoin market has jumped after clampdowns by authorities in China and South Korea, presenting the prospect of lucrative business for cryptocurrency exchanges.