Japan, one of the most open countries in the world for virtual currencies, has decided to impose stricter regulations to Cryptocurrency Exchanges. The financial regulator of the country created new rules that will be applied to old exchanges and new entities that want to start operating in Japan.
Regulations for a Better Crypto Environment
Different countries all over the world are starting to implement regulations on the crypto market. The main difference is that Japan was one of the friendliest countries all over the world towards bitcoin and blockchain technologies. Now, the Financial Services Agency (FSA), has decided to impose stricter measures for exchanges to operate in the country.
It is important to remember that at the beginning of the year, the Japanese exchange Coincheck, was hacked and lost $530 million dollars. The hackers were able to steal $523 million NEM tokens.
After that situation, Japan and its regulatory authorities decided to impose stricter measures to avoid a second situation similar to the one experienced by Coincheck.
The five criteria are related to management of assets, money laundering prevention, cryptocurrencies listed and internal exchanges procedures.
The intention of the agency is to ensure that crypto exchanges will not store virtual currencies in internet-connected computers. Moreover, they will have to set up multiple passwords for crypto transfers. At the same time, customers that try to move larger sums of virtual currencies will have to present papers validating their identities.
Customer assets will have to be managed separately from exchange assets, according to Nikkei. Multiple times a day, exchange operators will have to check customer account balances to avoid further problems.
One of the most controversial restrictions is related with the intention to delist currencies like Monero or other ‘privacy coins.’ These currencies can easily be used for money laundering and other criminal activities due to the fact that they provide high levels of anonymity. Finally, exchanges will have to separate shareholders from management.
Bermuda, a New Blockchain and Crypto Paradise?
Some countries like Japan are strengthening regulations to have a better control over exchanges and the crypto industry. But other countries like Bermuda are trying to help investors, ICOs, and businesses to expand their businesses in the paradisiac island.
David Burt, Premier of Bermuda, said:
“We’ve demonstrated that Bermuda is open for business and we’ll continue to spread the message that Bermuda is the ideal place for future economic growth. The Island is a place for stable regulation and legislative clarity around these new industries, and we intend on leveraging our legacy of blue-chip innovation to solve new problems in financial markets and digital assets.”
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