Japan FSA strengthens cryptocurrency exchange regulation to prevent another heist
The Financial Service Agency of Japan [FSA] strengthens cryptocurrency exchange regulation in the country. FSA has announced stricter regulations for cryptocurrency exchanges to prevent another heist like Coincheck’s. FSA is going to be using a tighter cryptocurrency exchange laws from this summer.
The FSA of Japan has said that from this summer onwards they would be using an improved, stricter framework for registered cryptocurrency exchanges as to keep up with the growth of technology. All the users who are going to be registering in the exchange would also have to follow the new rules.
After discovering the new age digital currencies, the government of Japan has shifted focus to strengthening consumer protection. The FSA of Japan does not want their citizens to be part of online payment fraud. They mainly want to prevent another heist.
The requirements which are being made important by the FSA this summer is to prevent money laundering. The FSA is asking to keep verification of the identification of users to keep track of their transactions and exchanges.
The second requirement put forward by the FSA was to keep customer assets separate from exchange assets. The trading exchanges should closely monitor the accounts of users of the exchanges.
Even the exchanges must keep a set of rules and regulations to prevent offices from using the client’s money. The exchange will only be allowed to trade with a certain set of trading pairs involving a set of cryptocurrencies.
FSA would not grant much anonymity because that would help criminals to do money laundering. There shall be tighter administrative rules in the exchanges to prevent manipulation of transaction information and exchange data for personal gains.
The registration of exchanges in the FSA start by the operators submitting documents which are required. After the clear review of the documents, the FSA inspectors will visit the exchanges to examine the initial screening of their operations and verify the number of employees working in the exchange.
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