Speaking to reporters after the Cabinet meeting, the Minister of Finance required the strengthening of management systems at domestic cryptocurrency exchanges, calling regulators to monitor the ecosystem in order to protect consumers.
In his opinion, illegal access, which caused a massive outflow of cryptocurrency from Coincheck is a great regret. He also believes that the Financial Services Agency should subject mandatory control to cryptocurrency traders in order to protect users.
A balance is needed between the promotion of innovation and the protection of consumers on cryptocurrency exchanges.
Previously, Taro Aso criticized the excessive regulation of cryptocurrency.
The comments of the Minister of Finance followed FSA’s statement on Monday. The regulator said that the investigations of all exchanges of cryptocurrencies, including on-site inspections, are necessary, and ordered to improve Coincheck's cybersecurity.
As previously reported, Coincheck executives confirmed that they stored currency in a hot wallet, which was compromised.
Unlike cold wallets, hot ones are subject to unauthorized access.
After the hack, Coincheck president Koichiro Wada said that it was difficult to manage cold wallets for technical reasons.
On Monday, Japan’s primary financial diplomat Masatsugu Asakawa noted that the regulation of the cryptocurrency will most likely be discussed in March among the G20 finance ministers and central bankers in Argentina.