Bank of Japan Gov. Haruhiko Kuroda urged operators of virtual-currency exchanges to enhance security in the wake of last week's massive cryptocurrency theft.
"Providers of cryptocurrency services need to explain risks to investors proactively and take sufficient security steps," Kuroda told the Diet Wednesday after Tokyo-based exchange Coincheck Inc. lost about ¥58 billion ($532 million) in NEM coins to hackers.
It is important for the exchanges to gain trust in the "stability and safety" of their settlements and financial services, Kuroda said, adding that investors "need to be aware that there are risks in cryptocurrency transactions."