Affect Of The Recent Zaif Exchange Hack On the Japanese Market.

As per a recent report by EtherDesk earlier, Zaif –one of the most populardigital exchange in Japan, was hacked this week, losing nearly $60 Mln in user funds due to a security breach.

Local publicationsalong withJapan Times allreportedthataround 6.7 Bln yen was stolen by the anonymous clusterof hackers, 2.2 Bln yen fromcompanyfunds while4.5 Bln yen from user funds were lost.

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Tech Bureau,the corporatebehind Zaif, told its customersthat each oneof the investorsaffected bythe hackingwould bereimbursed in digital currencies, to cover their losses.Asof this attack, Zaif reached a deed with the Tokyo-basedfinancialmarketsanalysisfirm Fisco,that gavethe corporate5Bln yenreciprocallyfor majority stakewithin theexchange.

Earlier in April last year,the Japan’sFinancial Services Agency [FSA]enforcedstrict policies toregulatecrypto exchanges in the country. Asa viewofits biggerinitiative, FSA created a national licensing program that required crypto trading platforms to file a licenseto workwithinthe country.

Recently, the FSAexpressedthatit’sdeterminedto expand its crypto team handlean outsizedquantityof applicationsthatareexpected to be filed bythe tipof 2018.More than hundredfirmsfiled their application requests for getting licensesto workas regulated digitalassetexchangeswithin thecountry.

Subsequent to the $500 Mln security breach of Coincheck,thatwas triggeredbecause of thepoor security systems employed by the exchange,the govt.of Japanstrongrulesoverseeing digitalasset trading platforms. The breach of Zaifis anticipatedto guidethe govt.to implement stricter policiesconcerningsecurity and internal management systems.

Whilethe govt.ofSouth Korea abstained from recognizing crypto and blockchain as a legit sector, the occurences ofstatushacking attacks leftinvestors requiring investor protection,thatthe govt.coud’nt refuse to any more further.

The $60 Mln hacking attack of Zaifwouldbe leadingthe JapaneseGovt. tojoin forcesadditionalactively with exchanges, leading government agencies to beconcernedwithin thesecurity and internal management systems of exchangesto make surethatthe userfundsstaysafe.

InSouth Korea,the govt.is considering the imposition of a policythat wouldneedthe exchanges by lawto get insurancein order thatexchangesdon’t requireexternal capital, same asthe case of Zaif,to cover investorfunds.

The FSA hasexpressedbeforethe Zaif hack thatit’lladd a dozen moreofficersonto the crypto department of the agency. Witharound more than a hundredcompanieswaiting on therosterto file applications with the FSA, the agencycan possiblyrevisenecessitiesforfirmsreferring tosecurity.