TOKYO, JAPAN - MediaOutReach - 21 September 2018 - For people who operate at the Zaif cryptocurrency exchange, they might be wrapped in sorrow andanxiety. In the past, the Zaif exchanges suffered hacking damage, illegaloutflows from users' hot wallets worth 4.5 billion yen, from the inside 2.2billion virtual currencies leaked illegally, total damage amounted to 6.7billion yen.

It can be saidthat this year is the worst year of the Japanese cryptocurrency exchangeindustry. Coincheck, one of the biggest cryptocurrency exchanges in Japan,suffered hacking damage in January, causing a cryptocurrency outflow incidentof 58 billion yen. Currently, security issues of mainstream exchanges in Japanshould be emphasized.

In thissituation, a new way of protecting users is recommended.

Here is newadvice on cryptocurrency exchange user protection.

First, theintroduction of a reliable cryptocurrency exchange in terms of security. Fromthe case of Zaif's loss case, I realized that it is necessary to strengthen theregulation. According to CoinMarketCap's data, Zaif is not a large-scaleexchange in the world, it is ranked 101th in the world. In order to providesuperior service to customers, it is necessary to introduce a cryptocurrencyexchange that can be trusted in terms of security in the world. Currently, suchexchanges are striving to enter Japan. For example, the world-class HuobiExchange has advanced into the Japanese market by acquiring Japanese registeredcryptocurrency exchange BitTrade. Huobi was founded in 2013 and currently has acompliance team in more than 10 countries including the United States, SouthKorea, Vietnam, Singapore, Brazil, Australia, the UK, Canada, and so on. Weprovide services to millions of users worldwide and have never had any securityissues Huobi will energize the market and contribute to user protection.

Second,insurance coverage. Since it is an authorized cryptocurrency exchange, it ispossible to secure assets of users via insurance companies. In the case of ahacking incident, cooperate with an insurance company so as to secure theuser's assets. Even for insurance companies, they earn great profits.

Third,establishment of user protection fund. Establishing a user protection fundjointly by Japanese exchanges or led by the Financial Services Agency or othergovernment departments may also be an effective way to protect users.