About the Zaif usage risk and security system
At Zaif, we have established a service system that is robust in terms of its capacity, security, and operation in order that our customers can trade safely. We would like you to understand the risks involved in Bitcoin and other cryptocurrency transactions, and also to understand the effort we put into security.
The following risks are involved in storing the cryptocurrency and cash that you deposit with us.
- Risk of operational management
- Risk of operator employee fraud
- Risk of operator security
- Risk of the Bitcoin network itself
From these four perspectives, and in order to ensure maximum safety and security, Zaif has laid out the following framework.
① Reinforcement of stored cryptocurrency management
Among the cryptocurrency balances entrusted by you, those that are not in circulation are stored offline in a state of being totally isolated from the system (Cold Storage), and in order to get them moving again we have adopted an internal control system that requires an electronic signature from multiple authorized administrators (Multi-Signature) across multiple stages.
② Reinforcement of user information and backup data management
Reading or restoring user information or backup data also requires an electronic signature from multiple authorized administrators (Multi-Signature) across multiple stages.
③ Reinforcement of system infrastructure robustness
We externally block the exchange system at multiple levels, and we are building a system security environment where hacking into the internal system is practically impossible. Therefore, all outside access to the database, etc. is impossible.
④ Separation of customer deposits
Management funds and customer deposits are managed completely separately. Those deposits are never diverted to fund company operations or other moneymaking.
⑤ Strengthening of risk management and security measures
For our development team, we hired talented personnel working in financial services development in Silicon Valley. Fraud detection based on Western mathematical models was introduced, fraud countermeasures adapted for Japan’s financial situation were also implemented, and we actively support international AML (anti-money laundering) and KYC (Know Your Customer) standards.
⑥ Securing of management funds
Our company, Tech Bureau Corp., received major funding from the venture capital firm NTVP, based on their understanding of our business plan, under which the initial several years would be unprofitable and dedicated to building a Bitcoin infrastructure. Therefore, campaign costs such as the negative fees that we implement do not put pressure on our operations or erode customer deposits. In addition, customer deposits are not diverted to our management funds.
On the risks of cryptocurrency
With cryptocurrencies such as Bitcoin, the balance is recorded and remittance is done on a network independent of the exchange. Therefore, the risks of stoppage or losses in Bitcoin itself cannot be avoided through the management effort of the exchange. Please bear this in mind when trading.
We monitor and review the latest information on cryptocurrency security and reflect this in our system. In addition, we have laid out the above security system and make the utmost effort to protect your deposited cryptocurrency and cash.
Please review the above and enjoy trading in cryptocurrency.