The Tokyo-based crypto exchange Coincheck, which was hacked in January this year, issued an official statement that it has come up with an enhanced KYC verification process. Going forward, the exchange will follow a strict process of identifying individuals and it will also adopt a couple of measures in accordance with the FSA administrative guidelines.
As per the business improvement order that the exchange had received from the Financial Services Agency (FSA), Coincheck was supposed to drastically re-examine various aspects before establishing an account of new customers. The exchange has thus increased its sophistication in terms of system risk management and CFT/AML risk management. It has also introduced cross-company risk management.
Crypto exchange Coincheck in its statement also shared that new account registrations and limited crypto trading commences on its platform. Starting October 30, the exchange will be resuming opening of new accounts and will also be allowing users to make partial payments and purchase some virtual currencies.
In accordance with the improved KYC verification process, as soon as the exchange receives an application for new account opening, it will confirm the submission of registration details first. Coincheck will then verify the submitted documents. In case it sees any incompleteness in the registration information, the exchange may ask the user to revise the registered content and re-submit the document. The user will then be notified via an email of the reception of the submitted document, as stated in Coinchek’s official website.
After the identity confirmation process is complete, a postcard will be sent announcing the completion of account opening via registered mail to the customer’s registered address. The customer must ensure to pick up the postcard. If they fail to do so, Coincheck won’t allow them to use the exchange’s service.
On receiving the postcard, Coincheck will send the customer an email notifying them of the start of service. Once the user confirms receiving the mail and logs in to the transaction screen, they can use all the functions allowed by the platform.
After crypto exchange Coincheck was hacked, they had sold their ownership stake to Monex Group for $33.5 million. The exchange is now keenly awaiting the green signal from the regulators to award them a virtual currency license. However, it has been nine months since the hack and the exchange has still not received the license, as reported on CCN.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]