Bank of Japan urges cryptocurrency operators to boost security

[TOKYO] A senior Bank of Japan (BOJ) official said on Tuesday providers of cryptocurrency-related services must be proactive in boosting security for their services and explaining to investors the risks associated with trading.

"At present, cryptocurrencies are used mostly for investment and speculative trading with usage for settlement purposes rare," BOJ executive director Shigehiro Kuwabara said in a speech at the bank's forum on financial settlement systems.

"But the incident made people realise anew how important it is to ensure the safety and stability of settlement and financial services," said Mr Kuwabara, who oversees the BOJ's department in charge of cryptocurrency research.

Coincheck, one of Japan's biggest cryptocurrency exchanges, said last month it had about 58 billion yen (S$703.8 million) worth of virtual coins stolen in a theft that highlighted the vulnerabilities in trading an asset policymakers are struggling to regulate.

REUTERS