JVCEA - Japan's Self Regulatory Association To Stricten Crypto Related Rules.

JVCEA - Japan's Self Regulatory Association To Stricten Crypto Related Rules.

2018-10-01 | Eddy Morgan

JVCEA - Japan's Self Regulatory Association To Stricten Crypto Related Rules.

According to a recent news report by ‘The Japan Times,’ citing ‘informed sources’ mentioned that JVCEA which is a self-regulatory cluster of a several large operational licensed exchange operators in Japan, established back in the month of April this year, Now, the organization is reportedly planing to tighten its rules by establishing a limit on the quantity of digital currencies that may be managed on-line by any exchange.

In line with the 'Japan Times’ sources, the limit can probably be set at around ten to twenty percent of its total client deposits. JVCEA is reportedly within the process of re-editing its rules, originally developed in early July this year, after which they would be be represented for certification to Japan’s Financial Services Agency [FSA].

Crypto exchanges including JVCEA unremarkably store most of their customers’ crypto assets offline on cold storage wallets. However, a certain quantity of cryptocurrency is sometimes usually kept into a hot wallet that's connected to the net, creating it prone to potential hacker attacks. JVCEA new rules would limit the share of digital assets that may be kept in similar fashion by the organization’s member exchanges.

As reported by EtherDesk earlier, this push for stricter self-regulation comes once after the recent hack of a Japanese crypto exchange ‘Zaif’ that has lost $60 Mln value of crypto assets that belonged both to the exchange and its customers.

Zaif’s hack occurred after an event larger case earlier this year, once hackers attacked a Japanese crypto exchange Coincheck, managing to urge away with $523 Mln value of NEM coins. The purloined crypto assets were conjointly reportedly kept on low security hot wallets.

The FSA has launched an investigation shortly after the hack of Zaif, aspiring to verify whether or not the corporate would be able to cover its client’s losses.

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