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Bitcoin Survives Another Exchange Hack but Standards Need to Improve

Benson Toti

The price of Bitcoin (BTC) continued to show its resilience this week, despite another major hack. Despite receiving business improvement orders by Japan’s Financial Services Agency (FSA), Tech Bureau Corp has found itself at the centre of the latest crypto scandal. According to a report by Reuters, the company’s Zaif exchange was hacked on September 14. Taking place over a two-hour period, the hack wasn’t detected until September 18 and resulted in $60 million in digital tokens being stolen.

Japan at the Centre of Another Crypto Attack

Since reporting the incident, Tech Bureau Corp accepted a $44.59 million investment from Fisco Ltd, which it will now use to replace the money stolen from its exchange. However, with Japan already reeling from previous crypto hacks, it’s likely Zaif will have to satisfy the FSA it’s fit for purpose before the issue goes away. Indeed, since $530 million in cryptos was stolen from Coincheck back in January, Japan’s financial regulator has been working to tighten up its controls on the industry. However, even with regulations in place, it seems that poor operating standards are leaving investors vulnerable.

Interestingly, however, the BTC price charts haven’t taken a significant dive following the news. Even though BTC was one of the main cryptocurrencies stolen during the hack, its value has rebounded since the incident. Tracking the price of Bitcoin from September 14 to September 27, the charts show a movement from ~$6,400 down to ~$6,200 and then up to ~$6,600. If nothing else, this shows the inherent strength of Bitcoin. However, the same can’t be said for other cryptos. With hacking an ever-present threat, standards need to improve across the industry.

Crypto Exchanges Need to Learn From Brokers

At Best Bitcoin Exchange, operator reviews are always evolving. By taking into account the latest incidents, safety reports and regulatory changes, the list of recommendations constantly being refined. However, even the top-rated crypto exchanges still operate in a regulatory grey area. For prospective investors, that’s a concern. Fortunately, there are alternatives. Broker sites like eToro operate under a set of strict conditions and offer investments on multiple assets, not just digital currencies. While that’s great for traders right now, this doesn’t help the long-term fate of Bitcoin et al.

If crypto exchanges want to become the go-to medium for investors, they need to have the same operating standards as established brokers. Once this happens will security breaches become an irregular occurrence. Only then will investors feel confident that they can buy BTC et al and not worry about the safety of their funds. Although Bitcoin has survived this time, it can’t fight adversity forever. What’s more, for the coins that are struggling to hold their value in the current climate, another major hack could be the death knell. For this reason alone, standards across the exchange sector need to improve.

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