According to a recent news report by ‘The Japan Times,’ citing ‘informed sources’ mentioned that JVCEA which is aself-regulatoryclusterofa several large operational licensedexchange operators in Japan, established back in the month ofApril this year, Now, the organization is reportedlyplaning totighten its rules by establishing a limit onthe quantityof digital currenciesthat maybe managedon-lineby any exchange.
In line with the ‘Japan Times’ sources, the limitcanprobablybe set at aroundtento twenty percent of its total client deposits. JVCEA is reportedlywithin theprocess of re-editingits rules, originallydevelopedinearly July this year,after whichthey would beberepresentedfor certification to Japan’sFinancialServices Agency [FSA].
Crypto exchanges including JVCEAunremarkablystore most of their customers’ crypto assets offline on cold storage wallets. However,a certainquantityof cryptocurrencyis sometimes usuallykeptinto a hotwalletthat’sconnected tothe net,creatingitprone topotential hacker attacks. JVCEA new ruleswouldlimit the share of digital assetsthat maybekept in similar fashionby the organization’s member exchanges.
As reported by EtherDesk earlier, this push for stricter self-regulation comesonceafter the recent hack of a Japanese crypto exchange ‘Zaif’ that has lost $60 Mln valueof crypto assetsthat belongedboth tothe exchangeand its customers.
Zaif’s hackoccurredafteran eventlarger case earlier this year,oncehackers attacked a Japanese crypto exchange Coincheck, managingto urgeaway with $523 Mlnvalueof NEM coins. Thepurloinedcrypto assets wereconjointlyreportedlykepton low security hot wallets.
The FSA has launchedaninvestigation shortlyafterthe hack of Zaif,aspiring toverifywhether or notthe corporatewould be able to cover its client’s losses.