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

Nakajima believes crypto assets similar Bitcoin take 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's why the Japanese regulator believes conscientious consideration is required earlier making it easier for the full general public to invest in crypto avails. Nakajima said that the loftier volatility of crypto markets due to not having underlying avails is a primary reason for the Japanese regulator not to allow crypto investment trusts.

Nippon 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 million NEM, worth approximately $534 million.

Since then, the country has become a difficult marketplace in which to do business organization for registered crypto exchanges, Nakajima admitted. The electric current regulatory framework on crypto exchanges finer protects customers and meets Anti-Money Laundering requirements. But the business state of affairs of most of the registered crypto exchanges "is rather rough," Nakajima added.

Related: Us–Japan digital trade deal should include crypto: American think tank

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

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