New rules on customer asset management imposed by Japanese regulators

Wednesday 3 October 2018 10:15 CET | News

Japan’s self-regulatory agency JVCEA has revealed plans to tighten the customer asset management measures.

The self-regulatory body, established at the beginning of 2018, controls and oversights the most important and licensed exchanges in Japan. The organization is working in order to tighten the rules related to the number of virtual currencies that exchanges can manage on their own accounts. The Japan Times informs that the limit will be set between 10 and 20% of customer deposits. Additionally, the agency will be updating its rules.

In general, crypto exchanges store customers’ funds offline on cold storage wallets, increasing the security levels of the company. Still, there are some wallets that are connected to the internet and that store users’ funds, making them more vulnerable to hacks and attacks. The new rules implemented by the JVCEA will limit this number of assets that can be stored on online wallets by exchanges.

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Keywords: JVCEA, cryptocurrency, cryptocurrency exchanges, Japan, cold wallet, hot wallet
Countries: World

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