A number of Japanese crypto exchanges aim to up self-regulation measures in light of a September hacking.
The Japan Virtual Currency Exchange Association plan to restrict the amount of crypto managed online to 10-20% form the customer deposit. The group also intend to revisit the regulatory rules they previous drew up and after the certification by the Financial Services Agency, the new measures will be implemented.
The recent hack resulted in the loss of around $61,5 million, out of which $39,6 million were customer assets.
WHY IS IT IMPORTANT?
- These hacks are pointing out the well-known weak sides of exchanges, the assets connected to the internet. The bigger the sum with internet access, the bigger the risk that it can be hacked. In order to avoid this, exchanges try to minimize the assets online at any given time.
- New self-regulatory rules for the exchanges in the association are in the interest of both the exchanges and the customers.
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