More Japanese Develop Interest In Cryptocurrency After Recent Exchange Hack

Coincheck, a notable Japanese Bitcoin cryptocurrency exchange was hacked two weeks ago. With the hack and the loss of billions of yen, it is possible to lose hope. At least, this is expected from the general public. But this is not what happens. Instead of shying off, or fearing to invest, many Japanese have developed immense interest. Although we do not see Coincheck in the limelight, there is good news. Bitflyer, another Japan-based cryptocurrency exchange is recording massive volumes of new signups, which is a clear indication that the general public is not deterred from digital coin investment.

Why Are Japanese Investors Interested In Cryptocurrency After Hack?

An executive of the exchange said that the impact has been seen especially after the hacking incident. “Ironically, many people got interested in cryptocurrencies after this incident,” the executive said.In a recent hack, Coincheck, a renowned cryptocurrency exchange was hacked. The hackers used ingenious means to steal money from investors. According to the exchange, the hacker, who has not been identified, made it to the system. He was able to replace the system’s address with his. That is how easy he managed to take clients’ 58 billion yen ($530 million) worth of NEM.

Japanese Financial Services Agency (JFSA)

The exchange has so far said that it is going to repay it’s 260, 000 customers. But the exchange has not elaborated how it is going to repay and until when. While this is happening, five lawyers are preparing the lawsuit. Following the hack, Japanese Financial Services Agency (JFSA) issued a business improvement order. The order was issued early last week to Coincheck. The order aims to ensure that the company is adhering to all security protocols.

The Agency Will Conduct A Security Probe

Meanwhile, the agency has also written to all cryptocurrency exchanges. Letters to these companies were dispatched with orders to allow agents from the agency to conduct security probe. On Friday, the agency, with the help of the Tokyo Police launched investigations into the successful hack. The agency conducted an on-site investigation.

Bank Of Japan Asks Exchanges To Enhance Security

According to Japan Times, the Governor of the Bank of Japan asked exchanges to enhance the security of their companies. The governor says that it is a sad thing for a big company like Coincheck to be hacked and lose billions of clients’ money within a short period. Mr. Haruhiko Kuroda told Japan Times on Thursday that it is the right thing for exchanges to do so. “If you are handling people’s money, you must enhance security. It is an unfortunate this for a hack to happen. But it is also very unfortunate for a big company to suffer this big loss,” the Governor said.

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