Japan Crypto Regulation: Exchanges Could Get New Rules Regarding Cold Wallets

The Japan crypto regulation is a hot topic in the latest cryptocurrency news, especially after the country’s Financial Services Agency (FSA) has decided to introduce new rules regarding cold wallets that would allow users to store cryptocurrencies at crypto exchanges.

As Reuters reported on April 17 citing a source familiar with the entire matter, the country’s financial regulator will reportedly require crypto exchanges to strengthen internal supervision of cold wallets – which are basically devices for storing digital currency which are not connected to the Internet.

The new Japan crypto regulation will also see the FSA addressing all of the difficulties of ensuring the security of digital currencies as well as other risks for the country since it intends to boost the fintech industry and stimulate economic growth.

Even though cold wallets are not connected to the Internet, in that manner they provide better security to global assets. Still, the FSA suggests that there could be risks of internal theft – something that was shared a lot on many best cryptocurrency news sites. As one source noted, a number of exchanges don’t actually have policies set in place where the people responsible for the storage would be regularly rotated out.

The FSA further addressed the Japan crypto regulation issue earlier this month, when it heard arguments for no longer classifying Bitcoin (BTC) as a currency. During one plenary session at the 41st General Assembly of the Financial Council and the 29th Financial Division meeting, Professor Iwashita Goto of Kyoto University argued that Bitcoin had become a currency that is beyond means of transacting mostly due to its borderless qualities which led it to appear throughout the world in its ten-year history.

Aside from this, a month ago the FSA also approved the second cryptocurrency exchange to begin operations under new regulations – and started issuing licenses to new cryptocurrency exchanges that were interested in serving the Japanese market. All of this leads to a brighter future where the Japan crypto regulation is not anymore a challenge.