The Coincheck heist recently reported by HSToday is spurring new regulation, according to Bloomberg Government.
At 2:57 a.m. on Friday morning in Tokyo, someone hacked into the digital wallet of Japanese cryptocurrency exchange Coincheck Inc. and pulled off one of the biggest heists in history.
While Bitcoin and its ilk have rebounded from their selloff on Friday — thanks in part to Coincheck’s assurances over the weekend that customers would be partially reimbursed — market observers said concerns over security lapses are likely to persist. They may even push some investors toward peer-to-peer methods of trading that don’t rely on centralized platforms.
“The latest theft will have two immediate effects: more regulation by authorities over exchanges and more recognition of the advantages offered by decentralized ways of trading,” said David Moskowitz, co-founder of Indorse Pte in Singapore, which runs a social network for blockchain enthusiasts.
Earlier this month, the U.S. Treasury described cryptocurrencies as an “evolving threat” and said it’s examining dealers to make sure they aren’t being used to finance illegal activities. UK Prime Minister Theresa May has promised to consider a clampdown, while South Korean policy makers are debating whether to ban digital-asset exchanges outright. China outlawed the venues last year.
