Coincheck report shows twofold improvement in trade
Japanese online broker Monex Group owner of previously hacked cryptocurrency exchange Coincheck released its financial report on Q3 for the 2019 fiscal year on Jan. 31. The report shows that the trading platform halved its losses in Q3, as compared with the preceding quarter.
The results of the report cover the third quarter ending March 31, 2019. They indicate that Monex’s crypto asset segment comprised of Coincheck, which was acquired by Monex in April 2018 reported an overall loss of 300 million yen (~$2.76 million ). This nonetheless represents a two-fold improvement over the second quarter of the 2019 fiscal year, when the segment post- ed a loss of 600 million yen (~$5.52 million).
As previously reported, Coincheck had suffered an industry record-breaking hack in January, 2018, when about $534 million worth of NEM (XEM) was stolen from its wallets. The exchange’s operations were subsequently paused. Following the resumption of new account signups, deposits, withdrawals, and limited trading at the end of October 2018 with the service further expanding in November the exchange’s trading volumes reportedly strongly rebounded and continue to increase. Monex’s results also reveal that as of December, 2018, 1.73 million downloads of the Coincheck app were recorded, of which 900,000 proceeded to become users with a confirmed identity.
Monex’s document further indicate that the firm has established a “Blockchain Lab” (“BCLab”), which is aimed at providing blockchain and cryptocurrency technology solutions to enterprises. Aside from resuming trading on the platform in fall, Monex has this month secured an official operating license for Coincheck from Japanese regulators, having worked last year to rehaul the platform’s security and management systems, as well as to reimburse victims of the hack.
Just several days ago, Monex issued a news release warning of a new scam claiming to be related to its business. The fraud reportedly involves potential victims being invited to call a form of automated trading system purportedly linked to Monex something the firm has stressed does not exist.
The United States Securities and Exchange Commission (SEC) is seeking sources for blockchain data and its analysis, a statement issued by the agency revealed on Jan. 31. According to the statement, the SEC is trying to find businesses able to provide blockchain data to support its risk monitoring and compliance enforcement activity, as well as inform the commission about digital assets. Last month, the agency announced that cryptocurrencies are one of the its top examination priorities for the current year.
According to the Jan. 31 statement, the agency expressed interest in potential sources for data concerning the most popular blockchain ledgers. Other than providing the data, the companies are also required to parse the data for ease in reviewing.
Furthermore, the SEC also requests information concerning an overview of the data extraction, conversion and verification processes. The agency also asks the participating companies to outline their “capability to derive insights from the available data,” including the identification of the owners of crypto addresses. Companies willing to respond to the agency’s request should send their response via email by Feb. 14 containing a brief capabilities statement package, the document notes.
In August 2018, an agent of the U.S. Drug Enforcement Administration (DEA) noted that while privacy-focused cryptos are more anonymous than Bitcoin (BTC), the agency has still ways to track them. The agent, Lilita Infante, declared:
“The blockchain actually gives us a lot of tools to be able to identify people. I actually want them to keep using them [cryptocurrencies].”