The financial services Agency of Japan (FSA) to protect investors and mitigate the risks of large-scale hacker attacks akin to the January burglary Coincheck is preparing to toughen requirements for local cryptocurrency exchanges. This writes the Nikkei Asian Review.
It is expected that new, stricter regulatory rules of the stock exchanges will be introduced this summer and will apply to existing and new platforms. Those exchanges that do not meet the new rules, will have to curtail their activities.
New rules can be divided into five main points. First exchange will be obliged to adhere to high standards in security, including a ban on the keeping of assets on the online wallets, as well as the mandatory introduction of multi-factor authentication.
Also in the framework of the fight against money laundering platforms will have to strengthen measures to identify customers.
The third requirement FSA will follow the instructions regarding asset management. In particular, the investors ‘ assets must be clearly separated from its own assets exchanges, while balances on client accounts would need to be tested daily. This is expected to help in the fight against possible manipulation. Regulators insist on the use of mechanisms that will enable staff exchanges to carry out transactions with clients ‘ assets.
The publication also confirms the intention of the FSA to impose a ban on trading cryptocurrencies aimed at increased privacy. As previously wrote ForkLog, under the ban can get trade Monero, Dash and zcash for that, according to the regulator, are used to launder illegally obtained income.
Finally, the FSA intends to make markets more transparent. For this purpose, the exchange needs to be clearly shared its shareholders and managers as well as employees involved in development and asset management. The ultimate goal of such measures – preventing insider trading and other types of manipulation.
Previously about the need for more stringent regulation of cryptocurrency exchanges, said the CEO of Japanese Monex Group Oki Matsumoto. According to him, since the exchange store investment funds, they must be governed by the same principles as banks.
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