According to a Reuters report on April 17, the Financial Services Agency (FSA) will introduce a new regulation that prohibits cryptocurrency exchanges from using "cold wallets" to store cryptocurrencies.
Reuters quoted a person familiar with the matter as saying that it is reported that Japanese financial regulators will require cryptocurrency exchanges to strengthen internal supervision of "cold wallets."
The FSA allegedly solved the difficulty of securing digital currencies and other risks facing the country by implementing new regulations, as it intends to boost the financial technology industry to stimulate economic growth.
The Japan Financial Services Authority said that although the "cold wallet" is not connected to the Internet, it can provide better security for digital assets, but it may be at risk of internal theft. According to sources, many exchanges did not follow the rules of regularly rotating personnel responsible for storage.
Earlier this month, the FSA heard an argument about not including Bitcoin (BTC) as a currency. During the 41st Financial Committee and the 29th Financial Sector Conference, Iwashita Goto, a professor at Kyoto University, believed that the borderless nature of Bitcoin made it beyond the definition of a trading instrument in the ten years of development.
In March of this year, the Japan Financial Services Authority approved the operation of the second cryptocurrency exchange under the new regulations. The Japan Financial Services Agency began issuing licenses to the new cryptocurrency exchange, hoping to serve the Japanese market. This long-awaited licensing program is, to some extent, a reaction to the events of the past two years, especially the $500 million hacking attack that local exchange Coincheck suffered in January 2018.