Japan to Prevent Digital Currency Theft by Imposing Strict New Standards

Bermuda outlines Cryptocurrency Regulations to attract Entrepreneurs - Cryptocurrency News

Japan to Prevent Digital Currency Theft by Imposing Strict New Standards
Back in April 2017, digital currencies were accepted in Japan as a legal method of payment, this made Japan one of the most supportive nations of the developing cryptocurrency economy. In January this year, NEM tokens worth over half a billion dollars were stolen by hackers in an attack on Coincheck – a Japanese digital currency exchange platform.

What the Japanese Government Is Doing About the Security of Cryptocurrency

Since the attack on Coincheck, which was also accompanied by the collapse of MtGox (an exchange platform based in Tokyo), the government of Japan has been working very hard to protect digital currency investors in Japan. In April, the Financial Services Agency said they need to introduce a new perspective in registrations reviews.

SEE ALSO:   NowCoin Game Review: Creating A Cryptocurrency Ecosystem Through A Trading Game

The Registration Process

The process of registration would go beyond just documentation. They said they would include preparatory visits carried out detailed investigations into the management of operations.

Digital currency exchange platforms need to register with the government of Japan through the Financial Services Agency and they will be subjected to the following vital requirement criteria.
• Japan-based cryptocurrency exchanges will have firmer standards on system management, they will also have to use cold storage of the digital currency they hold. This means they can’t store the digital currencies on a computer that is connected to the internet.

Also they will have to make sure that all their transactions utilize multiple authentication methods. In the case of Coincheck, the stolen digital currency was stored in a “hot wallet.”

SEE ALSO:   The Real Reason Behind Bitcoin's Price Crash Revealed -Fri Jun 22

• The identities of customers will have to be verified for large transfers; this is to prevent money laundering.
• The assets of customers will need to be managed distinctly from the assets of the exchanges, and they also have to make sure that staffs won’t be able to use customer funds.
• Along the line, some digital currencies will be banned – coins with high anonymity level.
These regulations are likely to be implemented in the next couple of months for both new and existing exchanges.


Legal Disclaimer: The content of this website (smartereum.com) is intended to convey general information only. This website does not provide legal, investment, tax, etc advice. You should not treat any information on smartereum.com as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. We strongly suggest seeking advice from your own financial, investment, tax, or legal adviser. Neither smartereum.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from smartereum.com.

SEE ALSO:   EOS Price Analysis: The EOS Bulls Have Lost Momentum and the Bears Are Taking Over

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Smart About Crypto!

Promise we won’t spam you!

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!