Japan’s Banking Giant SBI will Delay Crypto Exchange Launch

Japan is one of those few countries which has embraced cryptocurrency and is blooming with related companies and business. The Japanese banking giant SBI Group is yet to launch their cryptocurrency exchange which they have been teasing for quite some time now.

Since October 2016, SBI has been in the talks of starting its cryptocurrency exchange. As of September 2017, they had completed business registration with Japan’s Financial Service Agency (FSA). And in December 2017, SBI announced that they have partnered with the Bitcoin trading platform Houbi and is set to launch their cryptocurrency exchange by early 2018. But still, their new Cryptocurrency platform, which they have named SBI Virtual Currencies, is yet to see the light of day.

As per the announcement they made this Tuesday, Feb 27, the reason behind the delay of the launch is because they are concerned about potential security risks and are busy making security enhancements. This is what they had written in their announcement:

“We decided that it will take some extra time to further strengthen security measures, assets management, and customer management systems to ensure the protection of cryptocurrency exchange users.”

This is the latest update we have regarding the launch of Japan’s first bank-backed cryptocurrency exchange. Now, do note that the company has started offering some accounts registrations to some of their priority investors. They are just postponing the application from the ordinary citizen as well as lengthening the date for the start of trading.

Now, a clear reason for security concerns does revolve around the massive $530 million hack of NEM tokens that took place from Coincheck earlier this year. Since then FSA has initiated an investigation to check for any security compromises in their major 15 cryptocurrency exchanges. Particular attention is being given to computer system safety measures and the management of customers assets.

Now even though there aren’t any specific mention that SBI’s security enhancement is in reflection to the Coincheck hack or FSA’s new regulations, but still, the security measures taken on the part of SBI are welcome.

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