The financial services Agency of Japan (FSA) is planning the transition to the stricter rules of cryptocurrency exchanges, including was. The new legislation will come into force this summer; those companies that do not meet the requirements, FSA will send a recommendation to stop the bidding. According to Nikkei Asian Review, the decision was made in order to prevent incidents similar to the hacking Coincheck.
The priority agencies are not so much documentary compliance, as the safety of customers when making payments.
In particular, cryptomeria will face more stringent requirements to work with the system, including storage only on computers without an Internet connection and the use of multiple passwords for each standard of digital currencies. In addition, the mandatory will be an additional verification of the identity of the client when processing a large transaction — as a measure of combating money laundering. In order to separate consumer assets from its own inventory, the exchange will have to check daily balance of customer accounts to identify discrepancies. Requirements include and modify the statutory activities of the exchanges so that employees could not use client funds.
Will change the standard structure of exchanges: management is completely separate from the shareholders, and departments, the system development should terminate any working relationship with those responsible for the management of the property. The latter is intended to reduce the risk of employee use their position to manipulate the market for their own purposes.
An anonymous source associated with the FSA, argues that the new rules will allow the Agency to conduct more thorough verification and to anticipate risks. Because of the lack of experience of supervision over exchanges that the Agency was moving “to the touch in the dark, to understand how thoroughly we need to check certain aspects.” After the amendments come into force will change the registration process. Now after submitting the exchange application and the preliminary audit of the FSA will send out inspectors for personal monitoring of trading and reconcile the declared and actual number of employees.
The Department also provided the limitations of the proposals of the exchanges — also in the framework of the fight against fraud. However, this point is hardly surprising: last Monday the FSA has already decided to withdraw Monero, zcash for and Dash in connection with a high degree of transaction anonymity.