Japanese exchange Coincheck will receive a license at the end of the year

According to local news source Nikkei, Japan's Financial Services Agency (FSA) intends to issue a license to cryptocurrency exchange Coincheck.

Before the hack Coincheck was the largest cryptocurrency exchange in Japan. The attack, which cost 58 billion yen ($511 million) in losses, forced Coincheck to cease trading, leaving its clients unable to sell their holdings ahead of the market downturn.

The FSA says it has since improved client protection and other systems, helped by the online broker's acquisition of the exchange Monex Group.

In April 2017, Japan revised its payment services law to protect customers and prevent money laundering. The licensing system of cryptocurrency exchanges was also revised. The exchange Coincheck was already operating at the time and was allowed to temporarily continue operations until a license was obtained.

Following the Coincheck hack, the FSA twice recommended that the exchange improve its business operations, user protection systems and anti-money laundering policies.

Coincheck is currently reviewing the cryptocurrency it will be allow for listing. After the fall of the cryptocurrency market, Coincheck compensated its clients 46 billion yen.

The FSA's decision to grant a license to Coincheck is expected to launch the process of issuing licenses for hundreds of other companies that are awaiting the regulator's decision. When deciding whether to grant licences, the FSA will carefully consider business plans, anti-hacking measures and the effectiveness of safeguards against other types of fraud.

According to asia.nikkei.com