Coincheck

Coincheck is one of the largest cryptocurrency exchanges in Japan and Asia as a whole. It offers leveraged trading (up to 1:5) in some crytocurrencies for Japanese yen and vice versa, a spot buy/sell service and several other services. Coincheck claims to be the largest Bitcoin exchange in Japan, with a volume of 36 497 Bitcoins in the last 24 hours.

1 The History
2 The Hacker Attack
3 Platform
4 Methods of payment
5 See Also
6 Source

The History

The Coincheck Cryptocurrency exchange began working in August 2014 and is managed by Coincheck, inc. (formerly ResuPress, inc), founded in 2012. Two years later, more than 160 million transactions passed through the exchange per month, only in Japan, it was used by more than 2,200 sellers.

The cryptocurrency exchange cooperates with DMM.com, which operates in the entertainment industry with user base consisting of 19 million people. In addition, Coincheck together with IT-company SEKAI offers Chinese, Hong Kong and Taiwanese investors a platform for buying Japanese real estate for bitcoins.

Coincheck is a member of the JBA (Japan Blockchain Association) and actively cooperates with the government in preparing standards for the work of the crypto community in Japan.

The company supports the purchase and sale of various crypto-currencies, including Ether, DAO, LISK and Ethereum Classic.

Based on the results of 2017, the Coincheck cryptocurrency exchange was the first in Japan in terms of the volume of trade of bitcoins (according to jpbitcoin.com).

Crypto Exchange Coincheck Confirms Removal of Four Anonymity Focused Altcoins

The Hacker Attack

In January 2018, the Coincheck cryptocurrency exchange was hacked, which resulted in stealing about 500 million NEM tokens in the amount of $ 534 million. The cryptocurrency was transferred to 19 accounts, one of which was found to bear no relation to the hacker.

Hacking dealt only with NEF cryptocurrency. As the reason was the lack of sufficient security measures of Coincheck, the team of NEM developers refused to conduct a hard fork. Instead, NEM creates an automated tag system that will automatically tag any account that receives marked money.

After the incident, the Financial Services Agency initiated the verification of 15 Japanese cryptocurrency exchanges, in seven of which including Coincheck there found security breaches. The Agency brought the perpetrators to administrative responsibility, having ordered to improve the security system within a month.

As a result of the hacking, ten crypto traders filed a claim in mid-February against Coincheck for freezing crypto accounts. Another 132 cryptocurrecny investors filed the second claim in early March, demanding about $ 2 million compensation for damages.

The Coincheck Cryptocurrency exchange initially announced that it could not compensate for the losses of all affected users, but then promised to pay compensation to all 260,000 users in yen at its own expense at a rate of about 88.5 yen (about $ 0.83) per NEM coin.

According to the Tokyo consulting firm L Plus, by March 13, 2018, hackers managed to launder 200 million NEM coins to the amount of $ 90 million, but most of them were most likely sold in the darknet.

Platform

Due to the nature of Coincheck’s business, there several platforms, but we had a look at the trading platform. Leveraged trading is done through the TradeView platform, which provides feeds from several of the major cryptocurrency exchanges, in addition to Coincheck: Poloniex, Bitfinex, Bitstamp, Huobi, Coinbase and OKCoin.

The spot trading interface is simple and intuitive, with an order book and a chat window. Both platforms offer an English-language interface.

Coincheck also offers mobile applications for Android and iOS devices. They combine the e-wallet and money transferring service with the spot trading option. Simple price checking, charts and deposit options are also available.

Methods of payment

Coincheck provides payment options both in cryptocurrencies and fiat currencies. Deposits are accepted through bank transfers, credit and debit cards and through some convenience stores in Japan. A similar option for cash deposits in convenience stores is offered by two Polish exchanges: Coinroom and BitBay. There is also an option for payments through the Payeasy platform.

International deposits are also accepted in USD.