According to Nikkei, exchanges will now be required to monitor customer accounts multiple times daily for suspicious fluctuations, manage client assets separately from those of the exchange, and store crypto holdings on offline systems only. They will also face stricter anti-money-laundering (AML) measures, which demand know your customer (KYC) checks, such as ID verification, and multiple-password protection for large transfers.
quoted directly from the news article providedGood as long as the requirement is bringing more obligations to the exchanges rather then putting the power to control and monitor to government authorities I think their citizens can enjoy trading freely. They must remember they are only just doing this in order to avoid another heist from one of their own domestic exchange, pressuring this exchanges to improve their security and overall services is taking another step to avoid this kind of mistakes. Also their own self-regulatory board is now and play and will definitely act as a department that is built specifically to the purpose of monitoring this exchanges if they are doing every single obligations they have.