Monex opening crypto exchange for Institutional customers in the US

Cryptocurrencies have been a big dissapointment in the last couple of months. However this doesn’t mean that there is absolutely nothing happening to improve them, or the fact that they are now un-investable. The fact is that the digital currencies are still kicking it and attracting more and more investors.

According to Cointelegraph, Monex, a Japanes financial entity has decided that the digital currencies need a bit more attention and will provide services to institutional customers in the US starting in the first quarter of 2019. The brand that the Japanese entity will be using is Coincheck. It will take the form of a cryptocurrency exchange offering its customers Bitcoin, Bitcoin Cash, Ethereum, Litecoin and hopefully XRP.

The president of TradeStation, John Bartleman has disclosed information about the venture. Saying that the Japanese entity has applied for a money transmitter license in all of the US states and should receive them in the next 9 to 12 months.

Interestingly enough, John Bartleman’s TradeStation is a direct competitor to Monex. It is a foreign crypto exchange based in Florida, which also caters to institutional customers. Customers from which they were able to raise more than $27 million.

Dark past

Regardless of the way Coincheck presents itself to the institutional customers, their past cannot be erased. It has been proven that in January this year, the crypto exchange was hacked and approximately $500 million’s worth of cryptocurrency was stolen. The tokens were all XEM.  After the catastrophe, the company behind the XEM token, NEM Foundation laid the blame solely on the exchange. And is wasn’t unwarranted. According to reports the crypto exchange actually held all of the stolen cryptocurrency in a basic wallet, the password of which was easily accquired by the hackers. After the hack, Coincheck was forced to reimburse all of the investors involved, 81 cents to the dollar.

Although the heat was slowly cooling down, the Japanese crypto currency market received a massive hit, a lot of speculation statted to go around if the crypto exchanges responsible for massive investments, were even competent enough to keep them safe. The hack warranted nothing but the worst from the country’s financial watchdog, which promptly raided the exchange’s offices in search of some “foul play”.

Because of this the exchange had to “restart the business in Japan”. Something that has been taking way more time than expected as the financial watchdog ponders over, whether or not the company is worthy of a license after such a debaucle.

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Konstantin Rabin

About the Author: Konstantin Rabin

Konstantin has been working in the financial services industry since 2011. He is over-viewing various updates in the technology, regulation, and market movements. He's passionate about games and has a cute cat named Dog.

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