Engineer shortage prevails In Japans’ Crypto exchanges, blamed For Coincheck hack

Engineer shortage prevails In Japans’ Crypto exchanges, blamed For Coincheck hack

Reuters reported that Japan is currently suffering from the shortage of capable engineers to operate crypto exchanges. It gave the reference of Coincheck Inc which said that lack of software engineers was a big part of the recent $530million hack.

Koichiro Wada, Chief Executive Coincheck said, “We were aware we didn’t have enough people working on internal checks, management, and system risk. We strived to expand using headhunters and agencies but ended up in this situation.”

Companies all around Japan lack skilled engineers, cybersecurity experts, and blockchain specialists. On the other hand, Japanese authorities are pressurizing crypto exchanges to tighten security after Coicheck’s theft and the introduction of new firms in the market. Headhunter in Computer Futures Tokyo, Alexander Jenner, said, “It could put the brakes on everything. The sector’s growing so quickly, and the better exchanges are surviving. But many of them will fail.”

At present, 32 crypto exchanges operate in Japan, and almost 100 new companies have applied for a license with the financial authorities.

Japanese companies do not have a culture of recording data on blockchain or software engineers. According to the Ministry of Economy, Trade, and Industry, the big data and artificial intelligence sectors were troubled with a shortfall of 15,000 workers which is likely to rise by 35,000 till 2020.

In order to attract new engineers, Japanese companies are coming up with a more lucrative pay grade and guaranteed bonuses. The base pay is 20 to 30 percent higher in comparison to 2017 and engineers with five years’ experience are paid 11 million yen, $102,720.

Reuters interviewed Ryo Fukuda, a self-taught engineer from Next Currency, to get a detailed outlook on the situation. His company is a subsidiary of DMM.com looking for a cryptocurrency exchange license. He told Reuters, “I’d been doing nothing but crypto and my own projects, so I had the experience other engineers and companies couldn’t get. The market has really taken off, and there’s a shortage of engineers. That was when my value to the market soared.”

Japan is not the only country unable to keep up with growing business demands. The same condition prevails with a group of banks and insurance companies in Hong Kong are trying to use blockchain technology in their businesses.

On the other hand, crypto companies from Britain are positive on hiring blockchain specialists through strong market research. They are also looking forward to hiring employees from other countries to grow their domestic crypto community. Major crypto supporting cities like New York and San Francisco have been able to find proficient engineers for application of blockchain technology. Thinknum.com reports that the US is still the largest job supplying country in the crypto industry and has grown many folds in the past two years.

Experts claim the Japanese citizens with acute blockchain knowledge are already working on lifetime employment. The skill crunch will persist until new people are regularly hired. Alexander Jenner said that Japan might face worse conditions before things start to change for good.

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