Japan has passed a law controlling virtual money, after the state found itself at the epicentre of a multi-million dollar embezzlement scandal following the dramatic failure of the Tokyo.

After among the biggest, most recognized exchanges for the cryptocurrency, MtGox fell after a suspected theft worth almost half a billion dollars, which beaten the standing of the digital money in 2014.

Japanese lawmakers passed a bill late Wednesday stipulating that all “virtual money” exchanges must be controlled by the state’s Financial Services Agency.

The new law defines a virtual money as something with an “advantage-like nature” that can be changed for goods and services.

Digital currency exchanges confirm the identity of customers opening accounts and must register with the fiscal watchdog.

The new legislation aims to “handle problems of money laundering and shield users”, Japan’s Financial Services Agency said in a statement.

Critics of the virtual money movement say its anonymity and lack of regulation allow it to be perfect to be used by offenders.

Other G7 states have either introduced, or are in the procedure for attempting to introduce, similar laws, after expressing support for “proper regulation” of virtual monies at a 2015 assembly.

The exchange, which said it managed around 80 percent of worldwide Bitcoin trades, filed for bankruptcy protection shortly after the cyber money went missing, leaving a trail of angry investors calling for solutions.

Investors have called on the company’s court-appointed administrators so that specialists all over the world can help to publicise its information analyse what occurred at MtGox.

But the case has presented a complicated challenge to Japanese authorities, as the state – like many others – lacked laws to expressly control digital money.

Unlike conventional monies backed by a government or central bank, elaborate chains of interactions among a vast network of computers around earth generate Bitcoins.

Backers say virtual monies, which began to appear around 2009, allow for an anonymous and efficient manner to store and transfer resources online.