The financial regulator of Japan has announced its plans to inspect national cryptocurrency exchanges after Coincheck lost $530 million in altcoins due to hack attack.

The Financial Services Agency (FSA) announced that it is ready to conduct inspections of national cryptocurrency exchanges in order to evaluate their security measures aimed at protecting customers' funds.

The regulator also ordered Coincheck to submit a report on the hack attack which occurred on 26 January and improve security measures.

Coincheck was attacked on 26 January. Hackers found a breach in their security system and unlocked their hot wallet with NEM coins, transferring more than 523 million of NEM to other accounts. Coincheck suspended trading of all cryptocurrencies and following rumors about the hack attack admitted that it had lost 58 billion yen ($534 million) of NEM coins. Later, Coincheck announced its plans to reimburse stolen funds to customers, although it decided to return losses in Japanese yen and based on a lower exchange rate of NEM. Thus, customers will receive about 90% of stolen funds.

The team of NEM Foundation explained that the hack attack could come true because Coincheck stored all NEM coins in a hot wallet instead of a more secure cold wallet, as well as it did not use multisig security system.

“This is the biggest theft in the history of the world. As far as NEM is concerned, the tech is intact. We are not forking. Also, we would advise all exchanges to make use of our multi-signature smart contract which is among the best in the landscape. Coincheck didn't use them, and that's why they could have been hacked. They were very relaxed with their security measures,” the NEM Foundation president Lon Wong wrote.