The new commissioner of Japan's Financial Services Bureau (FSA), Junichi Nakajima, believes the country needs to think advisedly before making Bitcoin (BTC) and other cryptocurrencies more accessible to the general public.

Nakajima believes crypto assets like Bitcoin have the potential to benefit the public as a quick and cheap way to transfer money, he said in an interview with Bloomberg. However, most of the crypto assets are currently used for speculation and investment instead.

That'due south why the Japanese regulator believes conscientious consideration is required before making information technology easier for the general public to invest in crypto assets. Nakajima said that the loftier volatility of crypto markets due to not having underlying assets is a primary reason for the Japanese regulator non to allow crypto investment trusts.

Japan has been ramping up its regulatory efforts post-obit the infamous hack attack on Tokyo-based crypto exchange Coincheck, which resulted in the loss of 523 one thousand thousand NEM, worth approximately $534 1000000.

Since then, the country has get a difficult market in which to practise business for registered crypto exchanges, Nakajima admitted. The electric current regulatory framework on crypto exchanges effectively protects customers and meets Anti-Money Laundering requirements. Only the business situation of most of the registered crypto exchanges "is rather rough," Nakajima added.

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The Japanese authorities is aiming for global cooperation to regulate digital currencies. To this end, the Japanese Ministry building of Finance is reportedly seeking to increase its staff. The FSA as well established a new unit last month to monitor broader crypto markets and focus on decentralized finance.

Major crypto exchanges such as Binance and Bybit are not amidst Japan's 31 registered crypto exchanges. The FSA issued a formal alert letter to Bybit in May and Binance in June, accusing them of offer crypto exchange services in the country without registration.