Cryptocurrency exchanges have been flourishing in the country and there have been numerous mergers and acquisitions by institutional financial companies that have led to innovation and improvements. GMO Coin, a subsidiary of Tokyo Stock Exchange-listed GMO Internet Inc, has announced it will start handling altcoins through its cryptocurrency lending service. Users of GMO Coin lend their cryptocurrency to the platform and receive rental fees according to the volume of cryptocurrency they lend. The service was initially launched in April, focusing exclusively on Bitcoin. In May, Ethereum, Bitcoin Cash, Litecoin, and Ripple were added to the service. GMO Internet Group also focuses on the mining business. According to its May cryptocurrency mining report, both Bitcoin mining volume and hash rate (measure of mining performance) increased in April to 373BTC (+26% vs.
March) and 241PH/s (+87% vs.
March), respectively. Besides GMO Internet Group, SBI Group, a leading banking institution, and Monex Group, which operates a leading online securities company, have expanded into the cryptocurrency business in Japan. Monex Group announced its plan to acquire the Coincheck cryptocurrency exchange in April, which suffered major damage after the theft of $530m of NEM, and will restructure the company by making Coincheck a wholly-owned subsidiary. In addition, Yahoo Japan acquired shares in cryptocurrency exchange BitArg Exchange Tokyo in April.
At Consensus this year, Nomura Group, another listed Japanese financial service company, announced a joint venture with crypto fund provider CoinShares and wallet solution Ledger to create Komainu, a full custodial service for institutional investors.u00a0 Nomura Group, also an NYSE-listed company, offers broker services and both institutional and retail financial services across 30 countries in Asia. Although the growth of Japanu2019s crypto services industry is outpacing other countries, legal frameworks such as tax laws and Initial Coin Offering (ICO) regulations have not yet been fully developed, so attention is focused on the country to see how that develops. Coin and exchange hacks Japan has also become synonymous with crypto exchange hacks and currency theft, from the most worldu2019s most notorious Mt Gox in 2014 to the more recent Coincheck theft this year.
Monacoin, a Japanese cryptocurrency, was attacked in May causingu00a0 $90,000 in damages when a u201cselfish mineru201d who created their own chain after mining a block without broadcasting it to the network effectively voided previous transactions. User accounts were largely unharmed in the attack, but an overseas cryptocurrency exchange lost a significant amount of Monacoin deposits. While the possibility of a selfish mining attack had long been a concern, such an open attack as this was considered rare. Security for coins using a proof-of-work (PoW) consensus algorithm are determined by the size of their hash rate and miner dispersibility. Cryptocurrencies with low hash rates or a narrow dispersion of miners are expected to become targets for so-called 51% attacks, where a miner, or miners in concert, control the majority of the networku2019s hashrate.
u00a0Monacoin uses GPU for mining, alongside many other cryptocurrencies and it may be the case that cryptos using GPU mining are always exposed to these larger threats. Some time ago, Monero implemented a hard fork to prevent ASIC chip mining that would wipe out the GPU and CPU miners with their superior hashing power. However, this is also an admission to the vulnerabilities in GPU mining.
In April, the Japanese financial regulator (JFSA) asked exchanges to stop trading Monero , along with all other privacy coins that offer users anonymity, for fears they can circumvent the law. Binance, one of the worldu2019s largest exchanges by volume, also recently announced they would move headquarters from Japan to Malta after failing to obtain a license from the JFSA.
The post Looking to the future of crypto in the land of the rising coin .
