Bitcoin Daily: Japan’s LINE Debuts Crypto Lending; Hacks, Scams Among Reasons About 74 Crypto Exchanges Shut In 2020

LINE’s digital exchange operator and blockchain division LVC is rolling out a way for users to loan out digital assets to BITMAX, such as ethereum and bitcoin, CoinDesk reported.

Multiple cryptocurrencies, including ethereum, bitcoin, litecoin, XRP and bitcoin cash, can be lent via the offering, the report stated. The firm will allow users to earn as much as 10 percent per annum of the lending service’s charge over a timeframe that spans a couple of weeks in October.

Japan-based LINE rolled out its BITMAX digital currency exchange in 2019 once it obtained a license from Japan’s FSA, letting messaging app users access trading services.

For its part, LINE is a well-used messaging program in Japan and counts over 80 million local users among its ranks, according to the report. It rolled out an eWallet and blockchain development infrastructure in the summer.

In other news, about 75 digital currency exchanges have shuttered because of exit schemes, breaches or unknown reasons in 2020, 4crypto reported.

Four exchanges were noted as being breached, while five exchanges were flagged as scams, according to the report. Altogether, 31 were closed without force, and 34 were noted to have gone away without a reason. Beyond crypto exchanges, nearly 2,000 digital coins and altcoins aren’t in existence anymore.

As to the reason behind the failure of a number of smaller changes, 4crypto noted that the emergence of decentralized exchanges and the expansion of decentralized finance (DeFi) has been the final straw for multiple less-sizable outfits.

In addition, more regulatory pressure exists since the vertical’s burgeoning stages, and a number of exchanges don’t have the capacity to stay current with the mandates.

Furthermore, scams and breaches are considered to be increasing challenges facing exchanges.

One crypto exchange faced a $200 million breach in September, the report stated. It has rushed to restore confidence as it has put forward a number of security updates regarding the event.