the Japan’s financial Supervisory authority will regulate the management of Cold Wallets for Bitcoin exchanges. With the mains connected Hot Wallets are already under the supervision of the Japanese financial supervisors. This seems to be a consequence of the raids and the problems in the past few months.
By Patrick Pehl
18. April 2019BTC$5.251,00 0.70%part Facebook Twitter LinkedIn xing mail
Japan’s financial Supervisory authority (FSA) wants to market places, trade with Bitcoin & co., require to operate a more stringent internal Monitoring of their Cold Wallets. The want to know the Reuters news Agency from a source in the immediate vicinity of the FSA. A Cold Wallet is not connected to the Internet and electronic attacks better protected.
Japan needs more Bitcoin exchanges
The Japanese economy stutters, that is why it is a stated goal of the Japanese government, FinTech companies to settle. However, the financial supervision contributes to the high risk of unregulated market now, apparently, in order to protect the safety of deposits.
In the past year, some of the security gaps in the case of Bitcoin exchanges to emerge. Now the FSA has asked the platforms, the use of less secure Hot Wallets, so the Internet-connected Bitcoin wallets limit.
However, the FSA has noted that there are also internal risks. For example, the crypto-stock exchange fell in March Bithumb an internal perpetrator to the victim, who had it in for the Cold Wallets. “Some exchanges have no rules according to which the for the storage of competent personnel at regular intervals is replaced”, – quotes the source.
More than a dozen registered crypto-exchanges in Japan
In the island nation in the Pacific, there are more than a dozen registered trade places for crypto-currencies. Some of them have not started operation yet.
According to Reuters, the partially insecure Bitcoin exchanges are received, an arrangement of the Japanese financial supervision, to increase their security measures.
The FSA will order the exchanges that it considers to be unsafe, in order to improve their safety. On a telephone request from BTC-ECHO no opinion could be obtained. The FSA would not comment at this time.
In the last year by the Tokyo-based crypto-exchange CoinCheck Coins NEM tokens were stolen in the former a value of approximately US $ 530 million, i.e. around EUR 430 million. Already in the year 2017, the state had regulated in the Pacific, the exchange of crypto-currencies. It was the first country that began to regulate Bitcoin trading.
The step seems to make sense, even in terms of classical banks that have implemented a variety of regulations. Also, a Bank must back up its cash holdings particularly, as well as a part of the respective national Bank.
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