Fearlessly! New advice on cryptocurrency user protection Released

TOKYO, JAPAN – Media
OutReach – 21 September 2018 – For people who operate at the Zaif cryptocurrency exchange,
 they might be wrapped in sorrow and
anxiety. In the past, the Zaif exchanges suffered hacking damage, illegal
outflows from users’ hot wallets worth 4.5 billion yen, from the inside 2.2
billion virtual currencies leaked illegally, total damage amounted to 6.7
billion yen.

It can be said
that this year is the worst year of the Japanese cryptocurrency exchange
industry. Coincheck, one of the biggest cryptocurrency exchanges in Japan,
suffered hacking damage in January, causing a cryptocurrency outflow incident
of 58 billion yen. Currently, security issues of mainstream exchanges in Japan
should be emphasized.

In this
situation, a new way of protecting users is recommended.

Here is new
advice on cryptocurrency exchange user protection.

First, the
introduction of a reliable cryptocurrency exchange in terms of security. From
the case of Zaif’s loss case, I realized that it is necessary to strengthen the
regulation. According to CoinMarketCap’s data, Zaif is not a large-scale
exchange in the world, it is ranked 101th in the world. In order to provide
superior service to customers, it is necessary to introduce a cryptocurrency
exchange that can be trusted in terms of security in the world. Currently, such
exchanges are striving to enter Japan. For example, the world-class Huobi
Exchange has advanced into the Japanese market by acquiring Japanese registered
cryptocurrency exchange BitTrade. Huobi was founded in 2013 and currently has a
compliance team in more than 10 countries including the United States, South
Korea, Vietnam, Singapore, Brazil, Australia, the UK, Canada, and so on. We
provide services to millions of users worldwide and have never had any security
issues Huobi will energize the market and contribute to user protection.

Second,
insurance coverage. Since it is an authorized cryptocurrency exchange, it is
possible to secure assets of users via insurance companies. In the case of a
hacking incident, cooperate with an insurance company so as to secure the
user’s assets. Even for insurance companies, they earn great profits.

Third,
establishment of user protection fund. Establishing a user protection fund
jointly by Japanese exchanges or led by the Financial Services Agency or other
government departments may also be an effective way to protect users.