The Japanese financial regulator said on Monday that it would check all the crypto exchanges, and instructed Coincheck on how to behave after hackers stole from the exchange cryptocurrency worth $530 million, which is one of the largest hacks in the crypto market.
The incident highlighted the vulnerability of asset trading. Now different countries around the world are looking for a path to regulate the crypto market.
The Financial Services Agency (FSA) said on Monday it ordered the improvement of the operations of the Tokyo-registered Coincheck. On Friday, the exchange suspended the trading of all cryptocurrencies other than Bitcoin, after hackers stole NEM, one of the world's most popular digital coins, in the amount of 58 billion yen ($534 million).
Coincheck said on Sunday it would return about 90% at its own expense, but has not yet decided how and when it would be able to do so.
The FSA reported that it instructed Coincheck to report the incident and develop measures to avoid its recurrence by 13 February. The representative of the regulator said that, if necessary, FSA would conduct an inspection in the locations of other exchanges.
The regulator said that it had not yet verified whether Coincheck had sufficient funds to recover the stolen amount.
Japan obliged crypto exchange operators to pass state registration in April 2017, allowing already existing operators, such as Coincheck, to continue operations until formal registration.
FSA has already registered 16 crypto exchanges. Another 16 continue to work, waiting for official approval.
The cost of NEM fell to $0.78 from $1.01 on Friday, and on Monday it recovered to about $0.97, shows CoinMarketCap data.
The NEM Foundation, based in Singapore, reported that it has a NEM blockchain network tracking system for “full view” of the amount lost by Coincheck. The organization also said that hackers did not transfer the stolen funds to other exchanges or personal accounts, but it has no way to return the amount to the owners.