Tech Bureau’s Zaif Issued A Hard Warning By Japan’s Financial Services Agency
Tech Bureau, the company behind recently hacked cryptocurrency exchange Zaif have been issued a third (and probably final) warning by the Japanese Financial Services Agency (FSA). The warning has come in the form of a Business Improvement Order, one that stipulates certain improvements that must be made to a financial based business otherwise they risk having their license to trade revoked.
Zaif fell victim to a $60 million hack
On the 14th of September, Zaif became the latest victim of crypto crime, with $60 million worth of Bitcoin, Bitcoin Cash and Monacoin stolen. The hack saw the theft of assets owned by both Zaif and customers of Zaif. As a result of their business model, Zaif had already been issued Business Improvement Orders by the FSA twice before, once in March 2018 and again in June 2018.
According to Cointelegraph, the recent Business Improvement Order reads that the following steps need to take place with immediate effect:
- â(1) Determination of the facts and causes of the hacking incident (including clarification of the attribution of responsibility) and [the] formulation and execution of measures to prevent [its] recurrence.â
- â(2) Prevention of [the] expansion of customer damage.â
- â(3) Response to customer damage.â
As it stands, the FSA do not believe the investigation carried out by Tech Bureau and Zaif until now has been adequate, they believe that Zaif have failed to address the needs of their customers and generally, the FSA are not happy with the exchanges response to the situation.
Cryptocurrency exchanges in Japan
This should not come as a surprise to Zaif. Japanese authorities including the FSA have taken a very hard stance on cryptocurrency exchanges. Their form of regulation is one that clamps down on the exchanges to ensure that the safety and security of their customers (the traders and investors) is paramount. We know that Japan are very pro crypto but within this, they want to make the cryptocurrency industry and much safer place. Overall, if Zaif donât respond, they are going to be ain bigger trouble than they already are, therefore we expect them to pick up on this latest order with immediate effect.
- â(4) Review and implement concrete and effective improvement plans based on the hacking incident, [as well as the] contents of [two prior business improvement orders] from 8 March and 22 June [this year].â
- â(5) Submit written reports pertaining to (1) and (4) above by Thursday, September 27.â