Japan Faces Immense Amount of Theft in the Cryptocurrency Sector

Japan has had a rocky relationship with virtual currency. In the past months, this relationship has become even more tensed as Japan has fallen victim to the numerous crypto thefts. According to the latest reports, it is being stated that yen worth of $540 million has been duped through the means of the sector of cryptocurrency. The first six months of 2018 have indeed led to a loss of an alarming $60.403 billion yen due to investments in prominent virtual currencies like Bitcoin as well as NEM. Speculations are going on in the market regarding the measures that should be taken to prevent these kinds of activities taking place in the sector.

According to the National Police Agency of Japan, in the past year, there were 158 incidents which had taken place, these incidents have tripled in this year. It can be believed that the Coincheck hack that took place made the cryptocurrency sector infamous in the country. This was one of the largest crypto thefts to take place in the market and shook the sector to a great extent. It also brought a lot of distaste for the sector of virtual currency in the market, and the regulations were tightened in the virtual currency sector to prevent such thefts to take place in the future.

These regulations were imposed and improved upon by the Financial Services Agent, and the measures taken by this agency has yielded a positive outcome so far. One such measure that was taken by FSA was ensuring that the necessary protocols are followed by the various exchanges in the sector. However, it can be believed that there is a long work ahead of FSA considering the thefts that have taken place in the recent times. There are still some measures that have to be emphasized and improved upon to see to it that there is enhanced security in the sector.

Some measures that the investors can take to see to it that they are not hoodwinked out of their money is to understand that crypto exchanges are not completely safe spaces. Moreover, if they are putting their assets in the exchanges, the passwords should be difficult to crack and there should be two-factor authentication in place that makes it difficult for the potential thieves to dupe the investors of their money.

Even as steps are being taken by the government agency, investors and exchanges should also make attempts to take the necessary measures required to prevent hacks.