BitFlyer, the famous Tokyo-based cryptocurrency exchange recently reported a whopping $6.9 million loss in profits for it’s 2019 financial year. It is known over 20 highly credited cryptocurrency exchanges are accommodated in Japan which are kind of an indication of how Japan is an integral part of cryptocurrencies and blockchain-related activities. The firm’s business report stated that BitFlyer faced a decline in both sales as well as in returns on investment draw.
Founded in 2014 by an ex Goldman Sachs trader, Yuzo Kano. To establish the exchange in Japan which emerged as one of more open-minded nations in Asia for crypto-based activities Kano brought his riches of experience from the investment bank Goldman Sachs. BitFlyer was started when bitcoin’s steady value was $14000.
As bitcoin lost its value in the direction towards the second half of 2019, the company too suffered in its trading numbers. This loss in the trading numbers mixed the regulatory stress the company started to face with Goldman Sachs in the mid of 2018. During its investigation, the financial service agency found out that BitFlyer had a weak security and consent/compliance system which can easily get hackers drawn to itself and get compromised which could in-turn prove unsafe for customer’s investments.
To refine its system, BitFlyer halted the acceptance of new customers. Due to this, the company reported lower than expected sales figures.
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Like many large and successful businesses BitFlyer too is doing through such downtime which somewhat kind of a normal thing the crypto-world today. It is commendable to see such dedication in handling this tough time. This is the confidence that will attract investors in the near future.