On July 12th, $32 million was stolen from the Japanese crypto exchange BITPoint. After the BITPoint hack became known, all transactions and services were suspended.

A total of 3.5 billion yen, 2.5 billion from customer accounts and nearly 1 billion from the main deposit account were stolen.  First reports of the BITPoint hack were received in the late evening of July 11th.

The exchange currently works with BTC, ETH, BCH, LTC and XRP. After the BITPoint hack became public, the exchange quickly announced that all damage will be compensated as fast as possible.

There is already progress on the case as Japanese authorities were asked to help with the investigation. BITPoint revealed that 250 million yen or $2.3 million of the stolen crypto has been located on overseas exchanges.

Despite the location of the assets, there is no guarantee that the funds can be wired back to the exchange. BITPoint’s parent company, Remixpoint Inc., lost 19% in value after the services of the exchange were suspended.

The BITPoint hack will have some serious consequences

After the scale of the BITPoint hack became known, Remixpoint went untraded in Tokyo. This is another blow to Japanese crypto exchanges after Japan’s Financial Services Agency (FSA), issued multiple business improvement orders to local crypto exchanges.

FSA’s main concerns lie with crypto exchanges’ ability to comply with the anti-money-laundering (AML) requirements. This is mainly because FSA inspectors have found out that many crypto exchanges fail to apply proper Know-Your-Customer (KYC) checks.

Another huge issue which grabbed FSA’s attention, was the fact that there were countless cases where the client’s funds were not adequately separated from those of the exchanges.

FSA’s issued orders came a few weeks after Money Forward Inc, announced plans to launch a crypto asset exchange by the end of 2018.

Money Forward (MF) is the operator of one of Japan’s most popular personal budgeting apps. The press release, detailed MF’s plans to launch the crypto exchange.

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