Japanese crypto exchange Coincheck saw a 66 percent decline in revenue for Q3 2018

Japanese cryptocurrency exchange, Coincheck, which was in the news, earlier this year for its $520 million hack has reported losses amounting to over $5 million in the third quarter. On Monday, Monex Group (the company that acquired the exchange), released its financial report for Q3 (which is Q2 in the Japanese financial year).

The report stated that after Coincheck was hacked into and was acquired by Monex, the exchange had ” built sophisticated internal controls, including a high-standard security management system, which has recently become expected for registered cryptocurrency exchanges. Going forward, Coincheck will advance as a highly technology-driven company with a cutting-edge security control system and the know-how to secure profitability appropriate of its true value.” It added that there was marked improvement in areas such as governance, internal control and internal audit in response to the business improvement order.

Monex’s cryptoasset segment, which is under Coincheck, brought in revenue worth 315 million yen, about $2.8 million, between July and September. The report said post the hack, and business suspension in 2018, “Coincheck basically allowed existing customers only to sell their cryptocurrency. Segment loss was ¥ 0.6 B in Q2.

The report stated that nearly 1.7 million traders, trade with Coincheck and their age group in majority is between ages 20 and 30. However, the report admitted that, as of September 2018, Coincheck is yet to be registered as a cryptocurrency exchange by the Financial Services Agency (FSA).

As people would be aware, earlier this year, hackers had breached security protocols and depleted $530 million worth of NEM from Coincheck. The NEM Foundation, creators of the XEM cryptocurrency, said it has traced the stolen coins to an unidentified account, and the account owner had begun trying to move the coins onto six exchanges where they could then be sold off. However, the exchange did a commendable job of refunding users’ as soon as they took stock of the situation.

Also read: All member states of the FATF should adopt its recommendation to control the exchange of crypto, their storage and more

Source: https://www.crypto-news.in/news/japanese-cryptocurrency-exchange-coincheck-reports-5-million-loss-quarter-3/