Coincheck Resumes Monero Withdrawals and Sales

Japanese exchange Coincheck has announced partial resumption of operations with Monero. Its clients will be able to withdraw and sell XMR, but purchases are still unavailable. All previous requests for transactions have been canceled and users will have to initiate new transfers. They will be required to confirm the destination address, and state the purpose of each transaction. 

Also read: Coincheck Recorded Profit Despite the Hack While Victims Hit with Taxes

Identity Verification Introduced

Hacked Japanese exchange Coincheck has announced it is partially resuming operations with the privacy coin Monero. Withdraws and sales of XMR will be available to its users, but not purchases. According to a notice published on its website on Monday, new procedures have been introduced to ensure security for the traders.

All previous requests for transactions have been canceled and users will have to initiate new transfers. They will also be required to confirm the destination address, and state the reason for each transaction in a dedicated field. The system will automatically request confirmation for the information associated with every transaction.

Another security feature that has been introduced by the platform is the mandatory identity verification for users sending funds in any cryptocurrency or Japanese yen. The initial verification process may take up to several days, Coincheck informs its customers, asking for their understanding.

When sending/selling XMR, traders will be prompted to confirm the information they have provided with their registration. Any change to the details has to be verified before a crypto withdrawal can be processed. A confirmation screen will be displayed during the first transaction request after the resumption of the operations with Monero. The purpose of the remittance should be stated.

Price Fluctuations May Triger Suspension of Trade

Coincheck warns that due to the expected traffic its clients may face difficulties when trying to connect to the platform’s servers. The exchange also notes that if the trading volume increases rapidly, or if any unforeseen problems occur, it may temporarily or even permanently suspend trading at its own discretion. The same could happen “automatically” in case of sudden price fluctuations.

In the press release, Coincheck apologizes again for the suspension of its services following the attack on the platform in January. The Japanese exchange lost some ¥58 billion worth of NEM (~$550 million USD at the time) in one of the biggest hacks in crypto history. According to cybersecurity experts quoted by the Japanese press, half of the XEM coins have been laundered already on the darknet. In March, the NEM Foundation announced it would no longer track the stolen cryptos. Customers who lost funds have been compensated in yen.

Implementing measures to recover from the heist, Coincheck was expected to drop three cryptocurrencies providing high levels of anonymity – Monero, Zcash, and Dash. According to sources quoted by the Japan Times, the exchange has recognized the risks associated with these coins that can potentially facilitate money laundering. It has been previously criticized by regulators for its policies allowing traders to remain anonymous. According to some recent reports, Japan’s Financial Services Agency has been urging trading platforms to delist privacy coins.

Coincheck insists that it has taken adequate steps to maintain security and prevent money laundering and terrorism financing. It also says that it will resume trading gradually, giving priority to the protection of the assets of its customers. The cryptocurrency trading platform is operated by Coin Check Co., Ltd. On April 16 the company became a subsidiary of Monex Group, a large Japanese online brokerage firm. Toshihiko Katsuya, Former Chief Operating Officer of Monex Group, now serves as President and CEO of Coin Check Co.

Do expect Coincheck to resume normal trading operations in the near future? Tell us in the comments sections below.

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