The Strategist

Japan intends to limit imported technology in infrastructure after US Colonial Pipeline hack

05/18/2021 - 03:49

Japan's government will introduce amendments to laws that will require organisations in 14 key infrastructure sectors to consider national security risks when using imported equipment or services, the Nikkei newspaper reported, citing its own data.

The authorities intend to monitor compliance with the rules and suspend or revoke licences in case of violations.

Nikkei cites the telecoms, energy, railways, financial services, healthcare and government services among the sectors whose regulatory laws are planned to change. Nikkei reports that the requirement to control risks will include the use of cloud services, as well as connections to foreign servers.

The amendments are planned in response to the May 7 hacking of US pipeline operator Colonial Pipeline, which led to gasoline shortages at gas stations in several US states. On 13 May, the company announced that it had resumed operations on its pipelines. US President Joe Biden said criminals based in Russia were involved in the hack. At the same time, Mr Biden said that there was no reason to believe that Russian authorities were involved in the incident.

Following the attack, Colonial Pipeline paid the hackers a $5 million ransom in cryptocurrency to recover the data they had encrypted, Bloomberg reported. The publication then reported that the US Department of Justice launched an investigation into the largest cryptocurrency exchange, Binance.