Japan has put strict rules in place for cryptocurrencies to protect investors and stop future incidents after a major security breach at DMM Bitcoin, where hackers stole about 4,502.9 BTC worth about $305 million. The new laws say that cryptocurrency exchanges in Japan must keep their customers’ assets in Japan. This rule aims to safeguard assets from potential issues or disruptions with foreign exchange. The new law also makes it harder to launder money (AML) and changes the rules for stablecoins to make sure they are issued and managed safely.
One big step forward is that cryptocurrency payments are now legal in apps. This means that people can use digital assets to buy things and get services within apps. This step shows that Japan is serious about making cryptocurrencies a part of everyday transactions while keeping the financial system safe.
The DMM Bitcoin Hack: What Happened?
In May 2024, hackers stole 4,502.9 BTC from the DMM Bitcoin exchange, which was worth about $305 million at the time. The FBI and Japan’s National Police Agency looked into the attack and found that it was done by TraderTraitor, a group linked to North Korea. The hackers used advanced social engineering techniques, such as pretending to be recruiters, to get into internal systems.
DMM Bitcoin said it would close down and move its accounts and assets to SBI VC Trade by March 2025 after the breach. The goal of this decision is to make sure that users can keep using the service and to restore trust in the safety of cryptocurrency exchanges.
Japan’s quick response to the DMM Bitcoin hack shows how serious the country is about keeping its cryptocurrency landscape safe. Japan sets an example for other countries that are having trouble keeping digital assets safe by making rules stricter and encouraging openness.
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