Japanese authorities are putting pressure on Coincheck, a cryptocurrency wallet, after its exchange fell victim to hackers.
The Financial Services Agency (FSA) said on Monday it would inspect all exchanges and put pressure on Coincheck – a cryptocurrency wallet and exchange service – after digital money worth $534m (£379m) was stolen by hackers from its exchange.
The theft highlights the vulnerabilities in trading an asset that global policymakers are struggling to regulate.
It also emphasises the broader risks for Japan as it aims to leverage the financial technology industry to help drive economic growth.
The FSA ordered improvements to operations at Coincheck, based in Tokyo, which suspended trading in all cryptocurrencies on Friday except bitcoin after hackers stole 58bn yen (£379m) of NEM coins.
NEM coins are among the most popular digital currencies in the world.
Coincheck said on Sunday it would return about 90% with internal funds, but the FSA says it is yet to confirm whether the company has sufficient funds for the reimbursement.
The NEM coins were stored in an internet-connected hot wallet instead of a cold wallet, which is more secure.
Hackers cannot steal digital assets that are not connected to the internet.
