FSA – Japan’s financial regulator – will set new requirements for cryptocurrency exchanges aiming to improve the safekeeping of cryptocurrency storage within so-called “cold wallets” – Reuters reports.
Last year, Japanese cryptocurrency exchanges were prompted to shift from internet-connected “hot wallets” onto offline “cold wallets” by FSA’s restrictions of “hot wallets” use, due to their insufficient security.
Now the FSA intends to go even further on its quest for cryptocurrency security by ordering selected crypto exchanges to improve their procedures – as revealed to Reuters by an unnamed source “with direct knowledge of the matter”.
Reuter’s source pointed to the risk of internal theft as one of the reasons for the regulator’s latest move, specifically some exchanges’ failure to rotate their staff responsible for “cold wallets”.
There are currently 19 exchanges registered in Japan, not all of them in operation.