Following a technical glitch at a certain Japanese cryptocurrency exchange led to some users purchasing digital currencies for no cost at all. This caused a huge distress among the Japanese government body as alarming questions were raised regarding the security of these trading platforms.
Zaif, the Cryptocurrency which was affected by this glitch, is a registered company of the Japanese government and is administrated by Tech Bureau Corp, they reportedly admitted that the root cause of this blunder was due to the malfunctioning of its price calculating system, leading to 7 users buying some digital coin for a sum of zero yen. However, the exchange remained adamant and did not reveal the names of those currencies. A spokesperson for Zaif quickly gave an update and quoted “ Six of the transactions have been drained, and they are also looking for a quick fix for the seventh customer who was involved in this fiasco which involved the transfer of bitcoins”. As reported by Reuters
Zaif were quick in addressing this issue they also publicly apologized to their customers while assuring no harm will come to their clients. This glitch was first exposed on Feb 16th and addressed publicly by Zaif via their website on Feb 20th.
Zaif’s parent company had faced checks last month, As per Reuters, Zaif’s parent company also faced some checks earlier in the month following concerns by regulators of a possible cyber attack. Zaif is one of the 16 Japanese exchanges registered by their government.
HoweverTech Bureau Corp has not yet officially addressed this scenario anywhere till date.Japan is one of the markets that has been quite open to cryptocurrencies, Where fellow Asian countries like China and South Korea have taken a more cautious approach Japan has been a really welcoming market for cryptocurrencies.However, given this fiasco and the rising threat of ”crypto jackers”
It comes after Japanese exchange Coincheck had over $500 million of cryptocurrency stolen last month.
Reuters also reported that the 16 exchanges who are registered with the Japanese government will reportedly be creating a self-regulating body that will be administered by Japan’s Financial Services Association. They will also look to create new regulatory policies for the exchanges