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Tuesday, September 27, 2022

Massive Coincheck Cryptocurrency Heist Spurs Call for More Regulation

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.

Three days later, the theft of nearly $500 million in digital tokens is still reverberating through virtual currency markets and policy circles around the world.
The episode, disclosed by Coincheck executives at a hastily arranged press conference on Friday night, has heightened calls for stricter oversight at a time when many governments are struggling to formulate a response to the digital-asset boom. Japanese finance ministry officials said on Monday that the country will conduct on-site inspections of exchanges and that cryptocurrencies would likely become an issue at the next G-20 meeting.

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.  

Read more at Bloomberg.

Homeland Security Todayhttp://www.hstoday.us
The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

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