In a myriad episode where a glitch in the systems of A Japanese cryptocurrency exchange let some users buy any digital currency for free. The glitch basically prices the currencies at $0. This development definitely heightens concerns over security standard of such exchanges.
The exchange, Zaif, registered by the government and operated by Tech Bureau Corp, revealed that the glitch emoted out of the price calculation system, which allowed seven individuals to buy cryptocurrencies for zero yen. Which digital currencies were involved is not known yet.
Six of these lucky transactions have been voided successfully as the bought currency did not leave the exchange. However, the seventh is still being rectified by Zaif, as the customer attempted to transfer his “purchase” out of the exchange, divulged a spokesperson.
The issue came to light to Zaif on Febuary 16 and was made public 4 days later on Febuary 20 via a blog on its website. Zaif has assured that the incident won’t affect the customers in anyway. They issued an official apology for the same.
Zaif is one of the sixteen cryptocurrency exchange that are registered by the government. The parent company also faced checks last month owing to regulators’ fear of Zaif being vulnerable to cyberattacks.
Tech Bureau Corp has not yet responded to a request for comment.
This incident comes after over $500 millions of cryptocurrency was stolen last month from Coincheck.
Japan has had a liberal take on cryptocurrency as opposed to tougher stance taken by South Korea, China and India. Last year onwards, Japan has allowed merchants to take payments in cryptocurrencies if they wished.
Now as the tide turns, Japan is looking to regulate the industry to avoid recurrence of such incidents. However, it has come to fore that the 16 registered exchanges are set to create a self-regulating body which will be overseen by Japan’s Financial Services Association.