Zaif crypto exchange review and the problems it faced

Zaif Exchange Review

Not all companies agree to go through a tedious procedure to obtain a license. This is a rather durable procedure but the result is worth the efforts taken. The brand is perceived as reputable and customers tend to trust it more. Therefore Zaif exchange decided to join the list of licensed companies. A famous Japanese crypto platform founded by Tech Bureau is controlled by Japanese regulator after it received FSA license.

Some companies give consent to licensing procedure and work under regulator’s control. The same move was done by:

•     Coinmate, which became the first licensed European cryptocurrency exchange;
•     Bitonic, which applied for the license with Dutch Central Bank in order to be more attractive and induce serious buyers trade on it.

Bit2C, on the contrary, refused from this idea. There are a lot of unregulated companies on the market, operating around the world without regulator’s permission and Israeli Bit2C is one of them.

The benefits of using Zaif are evident and include low Zaif fees. There is no fixed fee and the amount depends upon the range of factors (ex. Use of particular tools).

According to Zaif Coinmarketcap data, the exchange offers 11 trading pairs. The main fiat currency of the exchange is Japanese Yen. The most popular cryptocurrency is BTC. The volume of trade involving Bitcoin is over 72% at the point of writing. Just like Quadriga cx, Zaif expanded to offer Ether currency. It also offers other virtual coins: its own Zaif coin called NEM along with MonaCash, Bitcoin Cash, Pepe Cash and others. Using the exchange, the person is able to buy virtual cash instantly. The service Instant Exchange is very convenient if you need the result fast. Selling BTC and Monacoin for JPY, the service features a very simple functionality.  But that does not mean that the platform does not have sophisticated tools. You can find history, charts and charting tools on the site.

Different methods of payment are available on Zaif such as bank transfer and cash deposits performed via convenience stores.

Real time interactions between the exchange and the client are very important as cryptocurrency market is highly volatile. Therefore special software is necessary to contact the exchange and get all required info. Zaif API websocket copes with this task perfectly.  One can see changes of BTC prices and observe fluctuations of the market using API connection. The software is rather convenient.

Zaif offers the unique service with leveraged trading. The clients are able to use the same account for exchange and margin trading and find this convenient. All functionality of the marketplace is at their disposal.  Rare marketplaces offer leveraged trading due to high risks. However, this company faced the challenge and acquired more customers who prefer such deals.

But this is not the only challenge Zaif faced. Security is a main problem of most cryptovenues which have to take severe measures and employ cutting-edge technologies to protect the site. The website offers such standard methods as 2-factor verification, encryption, cold storage and segregated accounts to keep their funds secure. Strict regulations are applied to withdraw of funds. Multi-signature procedure is required to complete the withdrawal. Despite all this the platform lost 60 million dollars recently caused by security incident. The funds were stolen from the hot wallets of the service. As you see, light security measures preferred for incredibly fast withdrawals can entail serious problems and compromise highly reputable platform. It was reported that hackers stole BTC, MonaCoin and Bitcoin Cash. The platform is going to pay back these funds to their clients. It has come out with the compensation plan already. The incident undermined the system and affected the future of the enterprise. The radical changes are expected now such as full transfer of the company. More details will be known later.

As you see, importance of security can’t be underestimated. It takes long to build up the reputation, but everything can be lost in a minute if appropriate measures are not taken. One small mistake is able to ruin a lot.  Zaif ICO had always been rather successful before the incident occurred. It took all standard security efforts but as it turned out it was not enough.