In a yet another incident of fund embezzlement, Japanese authorities have started an investigation against Meijo Gakuin Educational Corporation. The Mainichi, a Japanese newspaper, reported that the educational group had lost $1 million in cryptocurrency investment and this amount had been wrongfully diverted for investment purposes.
According to the report, the chairwoman of the educational trust allegedly asked board members to transfer the money to the account of the institute’s affiliates and then this money was invested in the cryptocurrency. There hasn’t been any official comment from the Meijo Gakuin; however, the chairwoman of the board had already stepped in down in June due to this controversy.
Japan and Crypto Frauds
Japan has acquired a dubious distinction of being a country with some of the most infamous cryptocurrency scams, and this latest one adds to the list of prominent digital heists experienced by the country in recent years. Take, for instance, Bitpoint cryptocurrency exchange which had lost about $32 million in cryptocurrency hack incident in July earlier this year. That explains why we are witnessing demand of more stringent regulations regarding the cryptocurrency and blockchain in the country.
The deputy Prime Minister, Taro Aso recently made a statement and called upon regulatory agencies to come up with new norms to regulate cryptocurrencies. Aso made this comment while speaking in FINSUM financial technology conference and stress upon the need to adopt new regulations to keep pace with the emerging technologies. The commissioner of the country’s Financial Services Agency (FSA), Toshihide Endo is also a staunch supporter of crypto reforms, and according to report by the Reuters news agency, Endo emphasized on striking a balance between encouraging innovations and protecting the interest of the customers in the emerging technology domain. FSA wants the cryptocurrency industry to grow at a healthy pace within the periphery of the regulations set by the government.
Legislation and Cryptocurrency
Japan is the first country in the world which has legislated the use of digital coins as a legal means of transaction. It has a system of licensing program to regulate the cryptocurrency and because of the friendly policies of the government; the country has emerged as a hub of cryptocurrency and blockchain technology firms. Now despite the regulations in place, Japan seems to be unable to control cryptocurrency frauds with one after another heist hitting the country.
The biggest cryptocurrency scandal in the history of the crypto world happened in the form of Coincheck Bitcoin wallet losing $530 million to hackers in January 2019. In September 2018, another cryptocurrency exchange Tech Bureau Corp lost around $60 million to cyber fraud. The intensity of attacks can be gauged from the fact that in 2018 alone, the country has recorded over 7000 dubious transactions related to cryptocurrencies. To control this, Japan is planning to set up an international network to control its cryptocurrency payments similar to the SWIFT network set up by banks to curb the menace of money laundering.