The cryptocurrency story can’t be complete without a huge reference to cryptocurrency exchanges. They are the bridge that links a crypto investor to the cryptocurrency world. Cryptocurrency exchanges have a strong and direct impact on the crypto market, and this level of influence cannot be just brushed aside as the New Year kicks off.
Many cryptocurrencies have now emerged in the crypto market, all with the aim of providing and managing crypto wallets for their investors. Last year, just like many digital coins, was a bad one for cryptocurrency exchanges, as hackers stole over a billion dollars’ worth of crypto assets from them. This series of hacks, took a toll on the value of the crypto market, as many digital coins saw their prices plummet, indicating how strong crypto exchanges can be in the market.
Just like cryptocurrencies, crypto exchanges would be looking to make this year a good one and this piece looks at how crypto markets are shaping up this year, to embrace the unpredictability of cryptocurrencies. The year hasn’t gone any far and yet still, there have been hacks on some crypto exchanges.
Just some few days back on the 14 of January, a New Zealand-based crypto exchange, Cryptopia was hacked, resulting in significant losses. The crypto exchange had over 800 different assets listed in its platform and also supports small-scale crypto asset trading pairs.
Regarding Security, there are still questions as to whether crypto exchanges, including the biggest ones, are safe and secured for the sake of their customers. With volatility a constant thing in the crypto market, investors are bound to lose some money and can’t afford to suffer that fate again because their trust in a crypto exchange was betrayed.
In bids to avoid regulation crackdowns by governments, it seems crypto exchanges are gradually doing due to work there. South Korea has seen some of its biggest crypto exchanges, pass a government security audit. The South Korea crypto market was one of the most active markets before the regulation chaos saw its consumer activities dwindle.
Now seven of the country’s biggest crypto exchanges, including Bithumb, Korbit all gained the satisfaction of investigators during the audit, and this will be very crucial in crypto exchanges fight for survival in the Asian zone.
The Financial Service Agency (FSA), Japan’s top financial regulator also approved the registration of Coincheck, as a crypto exchange on Friday, January 11. This feat is a significant development, as it’s been a year since Japan’s Financial Services Agency last gave the green light for a crypto exchange to legally operate in the country.