[2018-5-6]Japan's Financial Watchdog Sets Out New Requirements For Crypto . .

[anamie]

Japan’s financial watchdog, the Financial Services Agency (FSA), has laid out yet further regulatory stipulations for domestic crypto exchanges, Cointelegraph Japan reports today, May 6.

The regulator is reportedly intensifying its efforts to prevent a repeat of January’s $532 mln hack of crypto exchange Coincheck, the biggest single exchange hack in the history of the crypto ecosystem.

As Cointelegraph Japan reports, an FSA source told local news outlet Nikkei Asian Review that identifying potential risks in advance has been a challenge for the watchdog. The source reportedly told Nikkei that "without the necessary know-how, we've been feeling our way through the dark on how thoroughly we should check these different aspects.

Source: https://cointelegraph.com/news/japans-financial-watchdog-sets-out-new-requirements-for-crypto-exchanges

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[Theb]

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 provided

Good 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.

[dE_logics]

Government is just now coming to grips with the concept of cryptocurrency as an asset. I hope this stage lasts a while, because more and more regulations will put pressure on cryptocurrencies to conform to their wishes not only at the exchange level, but at the design level.