Large Japanese companies are buying up hacked crypto exchanges

In Japan, which is considered the largest crypto market in the world, a new trend has emerged. Large conglomerates are buying hacked digital asset trading platforms to enter the market.

Following widespread attacks on crypto exchanges, Japan's Financial Supervisory Authority (FSA) has adopted stricter policies regarding investor protection and platform security, to ensure that exchanges, at least licensed and regulated ones, have adequate security systems to store billions of dollars. 

The FSA is expanding its crypto department in response to demand for cryptocurrencies from large companies. But, given that 160 applications for licenses are already in the queue, it is unclear whether the regulator will provide these licenses to everyone, especially considering the recent attack on the Zaif exchange.

The largest hacker attack in history was carried out in January on the Coincheck exchange. The amount of losses amounted to more than $500 million. Fortunately, the company was able to return the lost funds to investors. After the attack, the exchange was bought for 34 million by Oki Matsumoto, a former chief executive of Goldman Sachs and current chief executive of Monex Group. Compared to Circle's $400 million acquisition of the Poloniex exchange, Coincheck was sold for less than 10 percent of the US exchange's value, although at its peak Coincheck's trading volume was nearly 100% greater than that of Poloniex.

For Monex Group, the acquisition of Coincheck is beneficial for many reasons, and one of these reasons is brand recognition. According to Matsumoto, it is possible to create an infrastructure that is stronger than Coincheck, but it is difficult to quickly create brand equity and a user base.

Japanese cryptocurrency exchange Zaif was also recently hacked. The amount of losses amounted to 60 million dollars. Unable to recoup lost investor funds, Zaif struck a deal with research firm Fisco, which provided Zaif with $44 million in exchange for a majority stake in the exchange..In some ways, analysts might argue that the acquisition of hacked exchanges by large conglomerates is a positive development, and security experts in both Japan and South Korea said last week that exchanges would fare much better with companies with significant resources and capital. The problem with Coincheck, Zaif, Coinrail and many other exchanges that were hacked last year was their inability to build a strong security team to prevent hacks. 

Under the supervision of the FSA, the market has every chance of long-term growth thanks to large corporations with experience in the market and ensuring the return of lost funds to investors.  

According to https://news.8btc.com/