Coincheck President: Crypto Market Slump Impacting Exchange’s Post-Hack Recovery

 

 

 

Coincheck President Toshihiko Katsuya told reporters on Wednesday that the ongoing slump in Bitcoin’s price has negatively impacted the exchange's ability to regain its footing since being hacked earlier this year, the Nikkei Asian Review reports.

That January hack resulted in the loss of 58 billion yen and sparked a strong regulatory response from officials in Japan. The exchange has yet to obtain its Financial Services Agency (FSA) license but is permitted to continue to operate during the licensing approval process.

Prior to the hack, Coincheck reportedly generated profits in the hundreds of millions of dollars. That profitability helped make it an attractive acquisition for financial services firm Monex Group, which bought the exchange in April.  In the months since, Coincheck has worked to resume full services for its customers -   a goal that was achieved just last month.

A return to its former levels of profitability may take even longer, however. As Nikkei reports:

For the six months ended September, Monex's crypto-asset division reported an 8 million yen net loss due to sales and administrative costs. Katsuya said Coincheck has more than 60 engineers.

Katsuya has suggested that trading volume is key to a return to Coincheck’s previous levels of success but acknowledged that there are stiff headwinds preventing a quick return to normal activity: "We hope to see trading volume rise as we run [the exchange] in a stable way. But the market is weak. Volatility is high, but transaction activity has not been revitalized."

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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