Japan is one of the leading country participating in cryptocurrency trade. The popularity of crypto is high, and it is common to see businesses accepting cryptocurrency as a payment method.
However, recently, the hack at Coincheck has stirred the local market sentiments. This has prompted the government to take steps. They are planning to conduct on-site inspections of 15 cryptocurrency exchanges. Japan’s financial services minister, Taro Aso, has released a statement of their plans to conduct a checkup on the popular cryptocurrency exchanges.
A news story published by Japan Times clearly mention the intention of Taro Aso who said that they will only conduct inspections for the exchanges that have approached regulatory authorities for certification.
The recent NEM hack of $530 at Coincheck has really prompted for the government to take a look and understand what is happening. This will make users safe in the upcoming days. That’s a huge amount of cryptocurrency that was hacked. To prevent further loss, Coincheck put a hold on withdrawing crypto.
The inspection will include checking security measures and understanding how the exchange manage customer assets. The reports also indicate that 5 out of the 15 exchanges have already announced that they are getting inspected in the near future.
The NEM hack prompted the Financial Services Agency(FSA) to inspect the exchange for security purposes.
Japan has been very positive towards cryptocurrency. Unlike China, they are prompt in regulating cryptocurrency rather than banning it. Right now, they are planning to regulate all the exchange by introducing registration system.
Coincheck, on the other hand, is going through hard times. After the hack, a lawsuit by seven traders is filed against the exchange. Investors are also angry on why their assets are frozen, and they might file another lawsuit against them for the losses that they have to incur because of it.