• Home
  • Live Data
  • Events
Home Crypto Ticker Japanese Regulators Tighten Exchange Security Standards

Shutterstock

Japanese Regulators Tighten Exchange Security Standards

New rules specify security protocols for offline storage.

-

As Japan looks to leverage the digital asset space to bolster its economy, its regulators are tasked with minimizing the country’s risk exposure. Most recently, the nation’s financial regulator will require its crypto exchanges to increase oversight on “cold storage” or offline wallets.

Following several security breaches in crypto exchanges last year, including an exchange that was hacked and pilfered for $530 million, Japan’s Financial Services Agency (FSA) restricted the use of online digital asset lockers called “hot wallets.” But even when it comes to offline “cold wallets”, the FSA has determined that the risk of internal theft is still present.

As Reuters reports, the agency discovered instances in which exchanges lacked internal safety protocols to protect cold storage, such as rotating wallet custodians. Now, the FSA will order Japan’s 19 registered cryptocurrency exchanges to improve security protocols.

SIMETRI Research

Japanese investors continue to spearhead crypto adoption in the APAC region, but that pioneering role also comes with high risks. As such, Japanese regulators are bent on curtailing that exposure without hampering progress in the space, a similar approach to that of the SEC with regards to blockchain.

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

Jalen Fargharson
Jalen Fargharson
Jalen is a Brooklyn native now living in Florida, where he is a licensed life insurance, variable annuities, and securities agent. Despite this background in traditional finance, it's cryptocurrency that truly stirs his passion. Jalen drinks more green juice than is good for him, and his Maltese pup is definitely the boss of him.

JOIN OUR COMMUNITY!

Join the conversation on Telegram and Twitter!

8,427FollowersFollow
1,342SubscribersSubscribe

More News & Analysis

Get The Best Of Crypto Briefing!

Crypto news flashes, new DARE research, upcoming mainnet launches, market reports, and much more!

X
X