Archive for Category: News

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  • UK: Gov’t Taskforce Proposes Crypto Regulation Changes, Questions Crypto Definition

    UK: Gov’t Taskforce Proposes Crypto Regulation Changes, Questions Crypto Definition

    The U.K. Cryptoassets Taskforce has released a report Oct. 29 that proposes some changes for cryptocurrency regulation and raises concerns over how digital assets are traded and used.

    Launched in March, the Cryptoassets Taskforce is made up of of the Bank of England (BOE) and the Financial Conduct Authority (FCA) and is charged to regulate and support crypto technologies.

    Since there is no widely agreed definition of a cryptoasset and given that cryptoassets significantly vary in the rights they provide to their holders, the Taskforce has developed a framework that considers three types of cryptoassets. Those include cryptoassets used as a means of exchange, for investment, and to support capital raising and development of decentralized networks through Initial Coin Offerings (ICOs).
    The Taskforce’s cryptoassets framework. Source: U.K. Cryptoassets Taskforce

    The Taskforce’s cryptoassets framework. Source: U.K. Cryptoassets Taskforce

    Per the report, cryptoassets used as a means of exchange can not be recognized as a currency or money due to high volatility, poor acceptance as means of exchange, and failure of use as a unit of account. However, the agency notes that cryptoasset deployment can allow more efficient and cheaper transactions thanks the elimination of intermediaries in the future.

    When used as an investment, cryptoassets can reportedly have the potential to widen access to new investment opportunities, though in the current market state, it can expose consumers to inappropriate levels of risks, including risks associated with illicit activity, the report says.

    Regarding ICOs, the agency has concluded that they have the potential to present a number of opportunities, including supporting innovation and competition, improving efficiency, addressing financing gaps, and building a new investor and customer base.

    Cryptocurrency contracts for difference (CFDs) and futures can, per the report, cause losses which can subsequently be intensified by product fees such as financing costs and spreads, and lack of transparency in the price establishment of the underlying cryptoasset. In this respect, the FCA proposes the following prohibition:

    “Given concerns identified around consumer protection and market integrity in these markets, the FCA will consult on a prohibition of the sale to retail consumers of all derivatives referencing exchange tokens such as Bitcoin (BTC), including CFDs, futures, options and transferable securities. The proposed prohibition would not cover derivatives referencing cryptoassets that qualify as securities, however CFDs on securities would remain subject to [the European Security and Market Authority’s] temporary restrictions and any future FCA proposals to implement permanent measures in relation to CFDs.”

    Further, the FSA will reportedly not authorize the listing of transferable securities or a fund that references to exchange tokens unless it has confidence in the integrity of the underlying market and compliance with other regulatory criteria.

    Though the Taskforce has indicated that cryproassets pose a range of risks to consumers, market integrity due to manipulation, and other market-abuse issues, it also notes that the situation may change in the future.

    The agency proposes Financial Promotions rules applying to regulated firms, which would give a “balanced impression” of the product or service, while not disguising and diminishing important warning statements.

    Earlier today, a joint report from the British Business Federation Authority (BBFA), venture capital fund Novum Insights, and cryptocurrency exchange TodaQ urged caution about overly strict regulation in the U.K. The report says that “bad regulation is worse than no regulation at all,” with the implication of knock-on effects for the wider U.K. fintech scene.

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  • Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 29

    Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 29

    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

    Market data is provided by the HitBTC exchange.

    Hackers stole 913 bitcoins from Canadian cryptocurrency exchange MapleChange. Though the exchange was small, repeated news of hacks are a major deterrent to the entry of institutional investors into the crypto industry. Responsible for managing large sums of money, traditional financial organizations are unwilling to take significant risks.

    Therefore, Fidelity’s entry into the custody service business is a big positive, as it will assure institutional investors have the same level of security that they are used to with traditional assets. After all, Fidelity has been managing billions of dollars securely for decades.

    Similar offerings by other large players will also attract the investors who have so far stayed away out of fear of the lack of appropriate security.

    A private equity and investment firm NXMH has acquired Bitstamp, one of the world’s largest cryptocurrency exchanges. NXMH, which is a subsidiary of Barclays, one of the U.K.’s largest banks, has reportedly paid $400 million for the deal.

    Investments like these show the confidence of the large players in the future of cryptocurrencies.

    In terms of adverse news, the Nature Climate Change journal has projected that Bitcoin could push global temperature by over 2 C by 2034 if it gets adopted at the same pace as other major technologies.

    Let’s see how the markets are reacting to these headlines.

    BTC/USD

    A break below $6,500 has attracted selling that has dragged Bitcoin lower. The next support on the downside is $6,200, below which a retest of the critical support zone of $5,900–$6,075.04 is likely.

    BTC/USD

    The movement of the BTC/USD pair on dips will give us an idea about the next direction. If the price rebounds sharply from the support, it will indicate that there is buying on dips.

    However, if the digital currency easily breaks down of the support, it will suggest selling by the bears. A close below $5,900 will be a negative development that might trigger a number of protective stops, dragging the price to the next support lines of $5,450 and $5,000. Therefore, traders who own long positions can keep their stops at $5,900.

    At times, the first break out of a tight range turns out to be a fake move. Therefore, we will have to watch for a couple of days before confirming that the trend has turned down decisively.

    ETH/USD

    After failing to break out of the 20-day EMA for the past few days, Ethereum has turned down. It can correct to the next support at $188.35, which had held on two previous occasions.

    ETH/USD

    However, this time, the downward sloping moving averages and the RSI below 40 shows that the sellers are in command. A break below $188.35 can sink the ETH/USD pair to $167.32, below which the downtrend will resume.

    The bearish view will be negated if the price rebounds sharply from the supports and scales above the moving averages. Above $249.93, the pair might start a new uptrend, pushing the price to $322.57.

    XRP/USD

    After hugging the 20-day EMA for the past few days, Ripple fell today, breaking below both moving averages. Currently, we see some buying at the intraday lows, which is a positive sign.

    XRP/USD

    The XRP/USD pair has support at $0.37185, which might hold. If this support breaks, the fall can extend to the next support zone of $0.24508–$0.26913.

    On the upside, a break out of $0.48 will indicate strength. We might suggest long positions after the digital currency sustains above $0.5. Our outlook on the pair is positive because the 50-day SMA is turning up and the 20-day EMA is flat.

    BCH/USD

    After trading close to the support line for the past few days, Bitcoin Cash broke down of the symmetrical triangle today. Though the pattern target is way lower, we anticipate a fall to $300, which might act as a support.

    BCH/USD

    Though there is a minor support at $408.0182, we expect it to be broken. The downtrending moving averages and the RSI close to the oversold territory suggest a further fall. The traders holding long positions can square off at $400. The BCH/USD pair will invalidate our bearish view if it breaks out and closes above $500.

    EOS/USD

    After trading close to both moving averages since Oct. 16, EOS plummeted today. It has a minor support at $5, below which the fall can extend to $4.49. Therefore, we suggest traders keep the stops on the existing position at $4.9.

    EOS/USD

    The EOS/USD pair will show strength if it bounces off $5 and climbs above $6.1. As long as the price remains below both moving averages, every attempt to rally will be met with selling at higher levels.

    XLM/USD

    Stellar has broken down of the moving averages. It can now correct to the next support zone of $0.184–$0.2.

    XLM/USD

    With the current fall, the bears have managed to stall the pullback at the downtrend line of the descending triangle for the fourth time. A break down of $0.184 will complete the descending triangle pattern that can result in a fall to the next support at $0.08. The XLM/USD pair will turn positive above the downtrend line of the descending triangle.

    LTC/USD

    Litecoin has been declining for the past few days and is currently at the support of $49.466. This level has held on three previous occasions. Therefore, it will act as a strong support. However, if the bears succeed in breaking and closing (UTC time frame) below this level, it will complete a bearish descending triangle pattern that can result in a fall to $40, and below that to $29.

    LTC/USD

    The LTC/USD pair will signal strength if it rebounds from the support and breaks out of the triangle at $60. Failure of a bearish pattern is a bullish sign. Therefore, above $60 we anticipate an attempt to break out of the range at $69.279.

    ADA/USD

    Cardano has broken down of the symmetrical triangle. If the bears succeed in closing (UTC time frame) below the support line of the triangle, it will increase the probability of a fall to the bottom of the range at $0.060105. Though there is a support close to $0.07, the down sloping 20-day EMA and the RSI in the negative zone suggest that it is likely to be broken. The digital currency will resume the downtrend if it breaks below $0.060105.

    ADA/USD

    The bearish view will be invalidated if the bulls succeed in pushing the price above the triangle. Such a move might carry the ADA/USD pair to the top of the range at $0.094256. A break out of the range increases the probability of a reversal and the start of a new uptrend.

    XMR/USD

    Though Monero is trading in a range, it has a negative bias. The price has dropped to the bottom of the $100.453–$128.65 range.

    XMR/USD

    Both moving averages have started to turn down and the RSI has declined into the negative territory. This shows that the bears have an upper hand.

    A break down of $100.453 will sink the XMR/USD pair to the critical support at $81, below which the downtrend will resume.

    TRX/USD

    TRON has broken down of the 50-day SMA, which can drag it to the next support at $0.0225. A break of this level will indicate that the bears are in charge of the situation.

    TRX/USD

    The TRX/USD pair will resume the downtrend if it breaks down and closes (UTC time frame) below the critical support at $0.0183. The next level to watch on the downside is $0.01095383.

    Our negative view will be invalidated if the bulls rebound from the supports and scale above $0.025. The digital currency will indicate a probable trend reversal if it sustains above $0.03.

    The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

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  • Wider Bitcoin Adoption Could Push Global Warming Beyond 2 C Threshold, Report Says

    Wider Bitcoin Adoption Could Push Global Warming Beyond 2 C Threshold, Report Says

    A new report from climate change scientists has raised the alarm over Bitcoin (BTC)’s carbon footprint and its potential future impact on global warming, published on Nature.com Oct. 29.

    The report extrapolates existing data for Bitcoin’s electricity consumption together with various projections for the cryptocurrency’s adoption in coming years.

    According to the report, in 2017, out of a rough total of 314.2 billion cashless transactions, Bitcoin’s share is estimated to have been around 0.033 percent. While acknowledging that “accelerated growth” is common at the early adoption stage of new technologies, the report nonetheless claims that even if Bitcoin follows a lower-level “median growth trend,” it could come to equal the global total of cashless transactions “in under 100 years.”

    Should this materialize, cumulative emissions of Bitcoin usage would “cross the 2 C threshold within 22 years” if its adoption rate is similar to some of “the slowest broadly adopted technologies,” or within just “11 years” if adopted at the fastest rate of adoption. The carbon footprint forecast assumes that the fuel types used to generate power today will remain “relatively fixed” in future years.

    For Bitcoin’s current carbon footprint, the report references recent research from Digiconomist calculated “on the assumptions” that:

    “60 percent of the economic return of the Bitcoin transaction verification process goes to electricity, at $0.05 per kWh and 0.7 kg of carbon dioxide-equivalent (CO2e) emitted per kWh, [resulting in an] estimate that Bitcoin usage emits 33.5 metric tons of CO2e annually, as of May 2018.”

    While refraining from predicting Bitcoin’s “fate,” the scientists suggest that economic logic will prompt miners to migrate to areas with low cost power supplies, therefore proposing that “electricity decarbonization could help to mitigate Bitcoin’s carbon footprint — but only where the cost of electricity from renewable sources is cheaper than fossil fuels.”

    Should energy costs remain high, more efficient hardware may help reduce its footprint, the report concedes, yet advises against relying on “yet-to-be-developed hardware.” It instead proposes “simple modifications to the overall system, such as adding more transactions per block or reducing the difficulty or time required to resolve the proof-of-work” in order to “immediately” reduce Bitcoin’s electricity consumption.  

    Not all energy experts concur with the common perception that high energy consumption is an “Achilles Heel” for Bitcoin. A report published in August critiqued the exclusive focus on mining’s energy-intensivity, emphasizing the importance of where the energy is produced and how it is generated, arguing that “electricity production can increase while still maintaining a minimal impact on the environment.”

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  • World’s Largest Diamond Producer Alrosa Joins De Beers’ Blockchain Pilot

    World’s Largest Diamond Producer Alrosa Joins De Beers’ Blockchain Pilot

    The world’s largest diamond mining firm, Russia’s Alrosa, has joined the pilot of fellow industry giant De Beers’ diamond supply chain blockchain platform “Tracr,” mining industry news outlet Mining Weekly reports Oct. 29.

    Alrosa is reported to be the world’s largest producer of raw diamonds in carat terms; together with De Beers, the two firms produce around half of the world’s supply. In Q3 2018, the firm’s rough diamond sales rose 12 percent year-on-year to $949 million in value, even as sales in carats declined.

    Tracr, whose pilot was first announced in January, aims to improve transparency and consumer trust across the diamond value chain from mine to retail.

    The solution works by creating a digital certificate for each diamond that records key attributes and transactions. The data is stored immutably on the blockchain, allowing buyers to verify that diamonds they purchase are natural and conflict-free.

    The latter term refers to an industry-specific concern in regard to “conflict diamonds,” also known as “blood diamonds” — uncut diamonds that have been mined in a war-zone and traded to illicitly fund combat.

    Alrosa CEO Sergey Ivanov told Mining Weekly that the company’s move to join the pilot was motivated by a belief that industry cooperation is necessary for the sake of “a common goal.”

    The Tracr blockchain initiative is reportedly designed to complement existing regulations and schemes that already function to foster industry confidence in diamonds’ provenance and quality, such as the Kimberley Process Certification Scheme, World Diamond Council System of Warranties, and Responsible Jewellery Council Code of Practices.

    As previously reported, Tracr was developed by De Beers in conjunction with other industry leaders, namely Diacore, Diarough, KGK Group, Rosy Blue NV, and Venus Jewel. De Beers’ first successfully implemented the blockchain solution to track 100 high-value diamonds this May.

    That same month, Signet Jewelers, the world’s largest diamond jewelry retailer, also joined the pilot Tracr initiative. The full-fledged platform is expect to launch this year, although an exact date has yet to be announced.

    Also in May, Alrosa partnered with KGK Diamonds to work with blockchain startup D1 Mint to tokenize diamonds. The project aims to widen the gems’ appeal as an investment asset class and drive consumer demand.

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  • Crypto Markets See Stirrings of Volatility as Major Coins Tip Into Red

    Crypto Markets See Stirrings of Volatility as Major Coins Tip Into Red

    Monday, Oct. 29: Crypto markets are seeing the first momentum in a while after a period of marked stability: virtually all of the major cryptocurrencies are in the red today, with some seeing losses of between a 4-6 percent range, as Coin360 data shows.

    Market visualization by Coin360

    Market visualization by Coin360

    Bitcoin (BTC) is trading at $6,352 at press time, seeing an almost 2 percent loss on the day according to CoinMarketCap. Having traded sideways throughout the week, the top coin today saw a vertiginous price drop, plummeting from its $6,480 trading range down to around $6,350 in the couple of hours before press time.

    Earlier this month, Bitcoin had achieved a 17-month low volatility rate, recording its highest level of stability since mid-2017: the trend had continued over recent weeks, excepting one short-lived spike on Oct. 15.

    Volatility and the lack thereof had become a staple on crypto twitter, with prominent crypto commentators quick to underscore Bitcoin’s new quasi-stablecoin status. Senior market analyst Mati Greenspan from eToro joked on Oct. 24: “Hey stock jocks!!! Tell me again how Bitcoin isn't a stable store of wealth due to extreme volatility…”

    As the market returns to its “normal” momentum, Adamant Capital founder Tuur Demeester has today quipped on Twitter, “is there a way to go long Bitcoin volatility? I would if I could.”

    On the week, the crypto is now around 2.7 percent in the red: monthly losses are at around 3.4 percent.

    Bitcoin 7-day price chart

    Bitcoin 7-day price chart. Source: CoinMarketCap

    Having seen similarly stable trading patterns, Ethereum (ETH) has today also been jolted by negative momentum, sliding steeply down 3 percent on the day to trade around $198, according to CoinMarketCap. Over the past week, the leading altcoin has also been trading sideways, showing only marginally more fluctuations than Bitcoin over the same time frame.

    This brings Ethereum to a 3.8 percent loss on its weekly chart; monthly losses are a much starker 14.8 percent.

    Ethereum 7-day price chart

    Ethereum 7-day price chart. Source: CoinMarketCap

    All of the remaining top ten coins on CoinMarketCap are in the red, except for stablecoin Tether (USDT), which is trading stably again.

    The hardest hit top-ten performer is seventh largest coin Litecoin (BCH), down 5.2 percent on the day to trade around $49.22 by press time. EOS (EOS) is down 4.2 percent at $5.17, roughly on par with Bitcoin Cash (BCH), down 4.25 percent at $419.22.

    In the context of the top twenty coins, the market picture is similarly bleak, with all assets seeing losses of within a 1-5 percent range. Anonymity-oriented alt Monero (XMR) is the least scathed, losing 1.1 percent over a 24 hour period to trade at around $101.43.

    TRON (TRX) is down 4.9 percent at $0.022, IOTA (MIOTA) is down 4.23 percent at $0.456, with Ethereum Classic (ETC) pushing a 4.85 percent loss at $9.12.

    Total market capitalization of all cryptocurrencies has slid to around $203.6 billion as of press time. Since its interweek peak at $211.1 billion Oct. 24., the market had held around or just below the $210 billion mark for much of the week before today’s tumble.

    7-day chart of the total market capitalization of all cryptocurrencies

    7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

    In crypto news today, major European cryptocurrency exchange Bitstamp has been acquired by Belgium-based investment firm NXMH. NXMH is a subsidiary of South Korean-based media giant NXC Corp., which bought a 65.19 percent stake in South Korean crypto exchange Korbit last year.

    Meanwhile, the operator of Japanese crypto exchange Coincheck, which suffered an industry record-breaking hack this January, has revealed the exchange saw a 66 percent decline in revenue for Q3 2018.

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  • “Mining With No Special Equipment”: Token Uses Bitcoin Principles on Ethereum Blockchain

    “Mining With No Special Equipment”: Token Uses Bitcoin Principles on Ethereum Blockchain

    The developers of a token with the slogan “No ICO - No Pre-mine - No Bullsh*t” say it allows users to mine the coin without any mining equipment required, simulating Bitcoin mining mechanism on the Ethereum blockchain.

    Bitcoinereum, a ERC-20 token created in 2017, is called by its developers the “first Bitcoin minable ERC-20 token on the Ethereum Blockchain.” Its mining system imitates the same mining mechanism on the Ethereum blockchain that is used for creating Bitcoin but instead of using mining equipment the users are “just required to call one function of the token’s smart contract.” According to the team, the only thing that users need to have is a few ETH in their wallets which will be only used to pay for the Ethereum network fees.

    “Anyone can mine Bitcoinereum by calling the Mine() function of the smart contract. You just need to interact with the smart contract by using any Ethereum wallet like MyEtherWallet.com or geth. The token incorporates a similar mining mechanism to Bitcoin, including the mining reward halving every 4 years. The whole process is quite transparent and we invite anyone interested to review the Bitcoinereum source code.” the Bitcoinereum team told Cointelegraph.

    The token website states only 21,000,000 coins can be mined and the initial supply was zero coins, as there was no pre-mine. According to the team, it should take around 132 years to mine every Bitcoinereum.

    The developers put the limit to a maximum of 50 coins being mined every 10 minutes, the same mining reward as Bitcoin back in 2009. This reward will continue until 2021 when it will be halved to 25, the team says. However, Bitcoinereum mechanism allows not only one miner to receive the full reward every 10 minutes. The reward is split by 50 calls instead, and whoever makes the first 50 calls receives the coins during that period. These rules are designed to help avoid a mining monopoly and get a better distribution of Bitcoinereum across the community. At press time 320,000 coins were mined so far.

    Smart contract mining as a crypto collectable

    The concept of smart contract mining (or public mining) means allowing anyone to mine a token by calling a smart contract function, the team explained. This concept was originally introduced by Artemine, a token which also does not require any customary equipment for mining. It was announced as an updated version of Minereum. At the time of its launch in 2017, Artemine’s team managed to build a major platform that was focused on public mining and self-mining principles.

    Artemine coin can be mined in two ways, by calling a smart contract function or by owning a Genesis Address. Another major update which was introduced is the possibility of decentralized trading of Genesis Addresses, “making them a sort of crypto collectable,” the team explained. The self-ming process of Genesis Addresses is automated and based on a mathematical formula. In addition to this, users can transfer their Genesis Addresses and trade them on the open market, directly to the purchaser without any third party involvement. Sales can be made through smart contracts in a peer-to-peer environment. The project’s team expects all Artemine Genesis Addresses to be mined in the next 40 to 60 years.

    Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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  • IT Firm Fujitsu Builds Blockchain Settlement Trial Infrastructure for Nine Japanese Banks

    IT Firm Fujitsu Builds Blockchain Settlement Trial Infrastructure for Nine Japanese Banks

    Japanese multinational IT equipment and services company Fujitsu will build an interbank settlement platform using blockchain technology as part of a joint project with nine domestic banks, Cointelegraph Japan reported Monday, Oct. 29.

    Aiming to “confirm the viability of blockchain technology,” the trial of the platform is being orchestrated by the Japanese Banks' Payment Clearing Network, also known as Zengin-Net, a press release confirmed.

    As part of the development, the platform will use an unnamed “digital currency” to make settlements.

    According to the release, Fujitsu “will additionally leverage the P2P money transfer platform it developed in (the) fiscal (year) 2017 with three major banks to generate the money transfers to other banks that will trigger interbank funds transfer settlement,” adding:

    “By participating in this project, Fujitsu aims to establish a new platform that utilizes cutting-edge technology to help realize a cashless society.”

    The company has been involved in technical blockchain development for some time, last year releasing a tool facilitating faster transactions for Hyperledger Fabric, the Linux Foundation’s enterprise blockchain solution. In June, Fujitsu also launched a blockchain-based data storage system for the tokenization of traditional retail promotional strategies such as coupons and loyalty points.

    Japan continues to see various blockchain banking initiatives appear from its major entities, with SBI Group earlier this month debuting a settlement system which uses Ripple (XRP) as its transfer medium.

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  • Tanzania: Gov’t Looks To Information, Technology Sphere for Help in Blockchain Use Cases

    Tanzania: Gov’t Looks To Information, Technology Sphere for Help in Blockchain Use Cases

    The Tanzanian government has openly invited academics and researchers to collaborate in producing “favorable” blockchain regulations, tabloid-style South African news outlet The Citizen reported Monday, Oct. 29.

    As part of a speech at the second Annual ICT [Information and Communications Technology] Professionals Conference 2018 in Dar Es Salaam, Dr. Jim Yonazi, the Deputy Permanent Secretary Minister for Works, Transport, and Communications, reached out to the industry for help divining new use cases for blockchain in order to gauge appropriate regulatory moves.

    “Although we (the government) can have a national blockchain committee, I also challenge you (experts) and universities to conduct thorough research on this technology to understand its potentials and challenges before full adoption,” he said.

    Tanzania remains pragmatic in its approach to cryptocurrency as well as blockchain, with the country’s central bank in a similar vein opting to study the phenomenon itself since last December in an effort to develop regulation.

    Both ecosystems remain very much in their infancy in the country, however, with sporadic innovations such as the first baby “born” on the blockchain in Tanzania as part of a women’s aid project highlighting the experimental nature of the technology locally.

    “Formalization of the activities needs such digital products as business software, communication platforms, affordable financial services affordable logistics and marketplaces which are easily accessible in the Blockchain [sic] platforms,” The Citizen quoted ICT lecturer Anthony Kigombola as saying.

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  • Hacked Crypto Exchange Coincheck Posts 66 Percent Lower Revenue in Q3 2018

    Hacked Crypto Exchange Coincheck Posts 66 Percent Lower Revenue in Q3 2018

    Japanese crypto exchange Coincheck saw a 66 percent decline in revenue for Q3 2018, according to fiscal results published by the exchange’s operator, Monex Group, Oct. 29.

    Coincheck was acquired by Monex Group Inc. as a wholly owned subsidiary on Apr. 16, when Coincheck decided to rehaul its shareholder composition and management after $532 million worth of NEM was stolen from its wallets this January.

    Monex CEO Oki Matsumoto told CT Japan today the exchange is “still awaiting” a license from the regulator.

    Monex’s results reveal that between July and September (termed Q3 in the U.S., Q2 in the Japanese context) of this year, its crypto asset segment raised revenue of ¥315 million (around $2.8 million). This represents a 66 percent decline as compared with the ¥942 million (around $8.3 million) raised the preceding quarter. The report outlines that:

    “Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. This limited revenue stream resulted in segment loss of ¥ 0.6 B [around $5.3 million]. Coincheck has improved in governance, internal control and internal audit, aiming for full service resumption.”

    While Monex has seen an overall loss since its acquisition of the exchange, the operator has brought down running costs (“selling general and administrative expenses”) in the most recent quarter (Q3) by around 17 percent, as compared with Q2.

    The report further claims that Coincheck currently has around 1.7 million “mostly young” users, which it deems as “likely to increase overtime.”

    The document also provides insight into measures undertaken to address security vulnerabilities and governance improvements since the platform received a business improvement order from Japan’s financial watchdog, the Financial Services Agency (FSA), Mar. 8.

    The measures reportedly entail “drastic” reforms to the management system, enhanced anti-money-laundering (AML) and counter-terrorism financing (CFT) measures, and revised assessment criteria for the risks for each crypto offering (Coincheck has, according to Monex, ceased to support four anonymity-oriented crypto assets, for example).

    As reported in April, Coincheck earned an estimated ¥53.2 billion (approximately $490 million) in the ten months between April 2017 and January 2018, the month of its industry record-breaking hack. At the time, Monex disclosed that Coincheck had recorded a writedown of ¥47.2 billion ($432 million) for the fiscal year closing in March as a refund to affected customers, yet still managed to close the year in the green.

    As of press time, Coincheck is seeing around $5 million in daily traded volume, according to CoinMarketCap.

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