Recently, a famous cryptocurrency exchange, Binance got into issues in Japan although it is based in Hong Kong. Malta is a Southern European island country which is essentially located between Italy and Tunisia. It moved its HQ to Malta to an apparently very welcoming Prime Minister who said the following on Twitter:
. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies
Although this is very encouraging it remains to be seen how much they can weather storm from external pressures. Malta is not a strong or powerful country so if a foreign country or powerful bankers threatened Malta to comply with their wishes against cryptocurrency could they really refuse?
The announcement from Malta is good but it will take a stable and powerful country to do the same for cryptocurrency people and business to migrate there. It may provide temporary protection or respite but what is truly needed is for a place like Hong Kong or Singapore to step up and do something similar.
At this point I think Venezuela may be the leader in this regard but the major risk with Venezuela is the political, economic and social stability. If they can resolve those issues Venezuela could be like the Hong Kong or Singapore of Latin America in no time.
For no apparent reason NEM has given up the chase for these coins. In all fairness I don’t think it was ever their issue, the stolen coins were the fault of the Coincheck Exchange’s security and not due to any flaw in the NEM client or network side. Of course naturally they were interested but one bold prediction is that “hackers would not be able to launder the coins due to lack of liquidity”. I am not sure if the NEM developers really believed that or if they thought heat on the exchanges would dissuade or slow the thieves down. I suspect they exchanged the NEM for other coins and then sold them back again clean through multiple exchanges.
I would say this isn’t bad for cryptocurrency because bank heists occur each day and nothing stops one from spending or exchanging the money in real life. It’s really no different than the initial fears of “e-commerce sites were hacked” just as real life stores have theft and holdups everyday. It is just a matter of mitigation whether physical or virtual.
But with that aside NEM clearly said they were ending the chase and wouldn’t say much more due to the “sensitivity of the investigation”. This is something I find a little strange, is it that they did find something but the authorities have forbidden them from disclosing it?
Was this an inside job on the part of Coincheck in Japan or was it something else explosive that they found? Could it have been a rival currency, bankers or government behind the hack? Anything is possible and speculation will rightfully run abound until more details emerge.