LDP Proposes Establishing a Cyber Response Headquarters Ahead of Cybersecurity Crisis, Emphasizing Cryptocurrency Tracking and Post-Quantum Cryptography

Key Points of This Article

• Proposal to establish a government-led "Cyber Response Headquarters (tentative name)"
• Accelerating the transition to PQC in light of the 2030-31 transition in Europe and the U.S.

Proposal for Establishing a Government-Led Response Headquarters

The Liberal Democratic Party's National Cybersecurity Strategy Headquarters (Head: House of Representatives member Masaki Hirakawa) approved a proposal on the "Fundamental Strengthening of Cybersecurity Measures" on the 22nd at the party's policy deliberation council. The main pillar is the establishment of a government-led "Cyber Response Headquarters (tentative name)." The proposal also includes tracking illegally obtained cryptocurrencies and accelerating the transition to post-quantum cryptography (PQC).

The proposal was compiled by the headquarters on the 20th. It positions the current situation of repeated cyberattacks on domestic companies and leaks of personal information as the "eve of a cyber crisis." It also points out that the proliferation of generative AI is advancing the autonomy of attacks. It warns that "AI cyber saturation attacks," where AI automatically exploits vulnerabilities and launches simultaneous attacks on a scale that exceeds the defensive side's processing capacity, will become a reality in the near future.

The proposal calls for the response headquarters to serve as a command center for the entire government, urging that a headquarters meeting be convened promptly in the event of significant damage. It encourages the management of listed companies to build a system from peacetime. It also suggests establishing a new personnel and salary system for civil servants to attract highly skilled private sector personnel, such as white hat hackers, with compensation commensurate with market value.

Risks of Misuse of Next-Generation AI and Collaboration with U.S. AI Companies

In the section directed at the National Cyber Coordination Office (NCO), the risks of the misuse of next-generation AI models leading to the autonomy and sophistication of attacks are described as the so-called "Mythos problem." As a countermeasure, it promotes the "Project YATA-Shield," which advances early detection and response to vulnerabilities using AI on the defensive side, and indicates a policy to collaborate with the AI Safety Institute (AISI).

It also calls for establishing direct collaboration channels with major U.S. AI companies such as OpenAI and Google. The aim is to use AI to inspect government agency information systems and expedite vulnerability assessments. The proposal urges AISI not only to conduct AI diagnostics but also to aim for the automation and autonomy of vulnerability remediation (patch application).

Tracking Cryptocurrencies and Transitioning to Post-Quantum Cryptography

Direct references to cryptocurrencies are found in the section for the National Police Agency. It calls for proactive participation in international joint investigations with law enforcement agencies from various countries, such as the FBI and Europol. It states that there should be active execution of neutralizing the infrastructure used by criminals, such as command servers, and tracking illegally obtained cryptocurrencies, demonstrating a deterrent effect that makes attacks targeting Japan unprofitable.

The NCO is urged to expedite the transition to PQC. Major countries in Europe and the U.S. are expected to transition significant systems by around 2030-31. In light of this, it suggests that government agencies should set early deadlines for high-priority systems. The Ministry of Internal Affairs and Communications is advised to expedite the social implementation of dual protection technology that combines quantum key distribution (QKD) with PQC.

PQC refers to a class of cryptographic methods that are considered difficult to decipher even when quantum computers become practical. The widely used public key cryptography is at risk of being broken by future quantum computers, and similar issues have been pointed out regarding the electronic signatures of Bitcoin (BTC).

In the section for the Digital Agency, it calls for verifying the usefulness of decentralized IDs (DIDs) and verifiable credentials (VCs) as a "trust foundation for the web3 era" that is resistant to information leakage and tampering. By April 2027, reading IC chips of My Number cards and others for face-to-face identity verification will be mandated under the Act on Prevention of Transfer of Criminal Proceeds. In light of this, it includes considerations for accelerating the use of cards in the private sector and mandating card acquisition.

It calls on the Financial Services Agency and others to ensure that financial institutions steadily advance the "short-term measures" indicated in the request document dated May 22, under the involvement of their management. It also mentions strengthening initiatives through cross-industry cyber exercises and the Financial ISAC, where financial institutions share threat information.

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