Japan introduces more stringent regulation of bitcoin exchanges

Japan introduces more stringent regulation of bitcoin exchanges

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Japan’s Financial Services Agency (FSA) with the purpose of defence of investors and decline of risks of large-scale hacker attacks is as the January breaking of Coincheck prepares to toughen the requirements produced to the local cryptocurrency exchanges. Nikkei Asian Review writes about it.

It is expected that new, stricter rules of adjusting of exchanges it will be put in an operation this summer and will spread both to already existing and on new platforms. To those exchanges that will not correspond to the new rules, will be to displace the activity.

New rules can be divided into five main points. First of all exchanges will oblige to adhere to the high standards in area of safety, including prohibition on storage of assets on online-purses, and also obligatory introduction of multivariable authentication.

Also within the framework of fight against white-washing platforms will have to strengthen measures on authentication of clients.

The third requirement of FSA the following pointing will become concerning a management by assets. In particular, the assets of investors must clearly move away from the own assets of exchanges, while bits and pieces on client accounts it will be necessary to check every day. It is assumed that it will help in a fight against possible manipulations. Also regulators insist on the use of mechanisms that will not allow to the employees of exchanges to carry out transactions with the assets of clients.

Edition confirms intention of FSA to enter prohibition on by the trading cryptocurrencies aimed at enhanceable privateness of users also. As wrote before, trade of Monero, Dash and Zcash,which, according to the regulator, are used to launder illegally obtained income.

Finally, FSA intends to obtain greater transparency from exchanges. To that end exchanges will have clearly to divide the shareholders and leaders, and also employees engaging in development of software and management by assets. An ultimate goal of such measures is prevention of insider trading and other types of manipulation.

Before about the necessity of more hard rules of adjusting of cryptocurrency exchanges CEO Japanese Monex Group declared to Oki Matsumoto. On his persuasion, as exchanges keep facilities of investors, they must be regulated  on the same principles, as jars.

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