Japan's Financial Services Agency to hold meeting with financial industry organizations to discuss measures to improve internal audits of crypto assets

The Financial Services Agency of Japan announced that it will convene the "Financial Institutions Internal Audit Promotion Committee" on January 25, 2025, aiming to improve the overall internal audit level of financial institutions, including those involving crypto assets (virtual assets). It is said that the previous theft of 4502.9 BTC from DMM Bitcoin has triggered a fundamental review of the security system of the crypto asset industry. In response to this situation, the Financial Services Agency strongly recommends that crypto asset-related businesses introduce multi-factor authentication and strengthen monitoring of suspicious access. It also requires companies to conduct self-inspections to confirm whether their wallet management systems and leakage risk response measures are appropriate. In addition, in order to gain the trust of domestic and foreign stakeholders, the government has formulated a policy that takes into account international trends. A large number of financial institutions, including the crypto asset industry, are expected to participate in this roundtable. In addition to relevant organizations such as the Japan Cryptocurrency Exchange Association (JVCEA), the Japan Bankers Association, the National Regional Banking Association, consulting agencies and external experts will also participate in the discussion to consider specific measures to increase the complexity of internal audits. Earlier news, regarding the theft of 48.2 billion yen worth of Bitcoin from the crypto asset (virtual currency) exchange DMM Bitcoin, the Japanese National Police Agency reported on December 24 that the incident was committed by TraderTraitor, a cyber attack group based in North Korea. South Korea announced that the facts of the crime have been confirmed. TraderTraitor is believed to be affiliated with the North Korean hacker group Lazarus Group, and the attack was carried out in multiple stages.