New rules implemented for exchanges and their cold wallets via Japanese FCA

18 Apr, 2019
by Colin Hawkins
Regulation
New rules implemented for exchanges and their cold wallets via Japanese FCA

Cold wallets for storing crypto via exchanges are to see new rules and regulations by Japan’s Financial Services Agency (FSA), as reported by Reuters on April 17.

Japan’s financial regulator will reportedly require exchanges to ramp up their internal supervision of the crypto wallets that are not connected to the internet. These cold wallets, with them not having any connection to the internet, there could be risks of internal theft, according to the FSA. Some exchanges apparently do not have a policy in place where the person responsible of these storage wallets at the exchange is regularly rotated out.

By strengthening this small policy as well as other policies for crypto exchanges across the country, the FSA looks to address as many security issues as possible, since it is intending on boosting the fintech industry to help the economic growth of the country.

In March of this year, with new, tighter regulations for crypto exchanges in the country, Japan saw its second crypto exchange to begin operations and receive the green light to do so. It takes a special licensing process for new crypto exchanges to operate in the country, however the FSA is doing its due diligence to approve these crypto exchanges due to the bad taste left it their mouth from the Coincheck half-billion-dollar hack in January 2018.

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