Japan's Financial Services Agency (FSA) is considering a new regulatory framework that would require digital asset custodians and operation management services to register with the authorities before offering their services to cryptocurrency exchange platforms.
According to a report by Nikkei, a working group under the Financial System Council, an advisory body to the Japanese prime minister, discussed the issue on November 7.
The measure aims to fill a significant regulatory gap, as current rules require sound asset management for exchange platforms but do not extend these requirements to the third-party providers they often hire.
The FSA's plan would require custody services to register with the authorities and exchanges to use only systems provided by these registered entities.