In line with a recent report published by ‘Reuters’, Japanese financial regulator FSA [Financial Services Agency] can reportedly introduce new rules related to cold wallets for holding cryptocurrencies at crypto-currency exchanges.
Reuters reports that the country’s financial regulator can reportedly require cryptocurrency exchanges to strengthen internal supervision of cold wallets – the devices used for the storage of digital currencies that are not linked to the web.
By implementing the new regulation, the FSA supposedly addresses the issues of ensuring the protection & security of digital currencies and other risks for the country since it intends to explore the fintech industry to stimulate the economical expansion.
Though the cold wallets don’t seem linked to the web and, therefore, offer higher security to digital assets, the FSA suggests there might be risks of internal theft. As per the source, several exchanges don’t have a policy where the individual liable for the storage would be often rotated out.
Earlier this month, the FSA ‘discussed‘ arguments for no longer classifying Bitcoin [BTC] as a currency. Throughout a plenary session at the 41st General Assembly of the Financial Council as well as the 29th Financial Division Meeting, Professor Iwashita Goto of Kyoto University alleged that bitcoin had become something beyond a means of transacting because of its borderless qualities, that have led it to appear throughout the globe in its ten-year history.
Even in March, the FSA ‘approved‘ the second cryptocurrency exchange to start operations underneath new laws. The FSA began ‘issuing‘ licenses to new cryptocurrency exchanges willing to serve within the Japanese market. The licensing scheme, that encompasses a long roll, was partly a reaction to the events of the past 2 years, notably native exchange Coincheck’s half-billion-dollar hack earlier in January last year.