In response to a reported increase in the illicit use of cryptocurrencies, the Japan National Police Agency (NPA) plans to introduce new software that can track the cryptocurrency transaction history, the 39. Japanese national public transmission agency NHK reported on August 30th.
In 2019 the national police agency will put in place special software to track the history of virtual currency transactions within the country. The move comes as part of an effort to combat the increased level of cryptocurrency abuse and theft.
To cover the expenses of new software, the NPA is trying to increase its budget by 35 million yen (about $ 315,000) for the next fiscal year.
The software was developed by a private company, whose name was not disclosed. According to the NHK, the software can extract the transaction data needed for an investigation, display them from open records and show which encryption operators used the currency.
At the beginning of this month, Tokyo security software maker Trend Micro discovered Bitcoin (BTC) malware for ATMs (ATM) available for online purchase. At a cost of $ 25,000, criminals could buy BTC ATM malware accompanied by a card ready for use with EMV and near field communication capabilities, allowing scammers to receive the BTC equivalent of up to 6,750 US dollars, euros or pounds.  Last week, the commissioner of the Financial Services Agency (FSA) of Japan, said that the agency wants the cryptocurrency sector "to grow under appropriate regulation", adding that "it does not intend to curb excessively [the crypto industry]. "The FSA's goal should develop the cryptography industry and find a" balance "between consumer protection and technological innovation.
Previously, the FSA revealed the results of on-site inspections of cryptocurrent operators, noting that "substantial" continuous review of registration procedures will be required. "The FSA probe found that Crypto's maintenance and control systems Exchange had failed to keep up with the exponential growth of transaction volumes.