Japan is taking new measures to prevent heists similar to January’s Coincheck hack.
The Japanese Financial Services Agency has introduced tighter registration regulations for cryptocurrency exchange operators, the Nikkei Asian Review reported yesterday. A five-point checklist will now require exchanges to comply with new operational standards:
1- Improved Safety
- Cryptocurrencies shall not be stored in computers that are connected to the Internet. - Multiple passwords are to be set for currency transfers.
2 - Anti-Laundering Measures
- Customer identification must be verified for large transfers.
3 - Regular Asset Checks
- Operators must check customer account balances multiple times per day to detect diversions. - Operators are required to have rules to keep their officers from using client money or virtual currencies.
4 - Selection of currencies
- Cryptocurrencies with high levels of anonymity will be banned.
5 - Roles
- Operators shall have separate shareholders from management. - Development roles will also be separated from asset management roles so employees can not manipulate the system to their benefit.
The Coincheck Inc. hack is considered to be one of the biggest heists ever, as the exchange lost over $500 million. To protect investors and prevent further losses, the FSA will introduce new regulations sometime this summer, right after it starts receiving registration applications from new exchanges. The new regulations will also apply to already registered and working exchanges.
By Nadya Astam