The financial regulator in Japan has modified the rules and regulations pertaining to cryptocurrency exchanges. This was done due to a recent hacking of a cryptocurrency exchange by the name of Coincheck. According to the regulator, the changes in the rules and regulations will actually make the cryptocurrency industry much more secure.
Detailed review procedure
The financial services agency of Japan recently stated that they will be creating a more detailed procedure for cryptocurrency exchanges. Only the cryptocurrency exchanges which are able to abide by the modified rules and regulations will be able to operate. In the meantime, the cryptocurrency exchanges whose applications are under review can continue to operate as well.
Also, the agency will be looking at the on-site operations of the cryptocurrency exchanges as well. This is done to ensure a proper security is provided by the cryptocurrency exchanges or not.
Increasingly, the main aim of Japanese regulators is to ensure that people start trusting the cryptocurrency exchanges again. Also, they are also trying to make sure that the incident like the hacking of Coincheck does not take place again. Also, many of the cryptocurrency exchanges are claiming that they will not be able to abide by the rules and regulations. As a result, they are even shutting down.
Many of the cryptocurrency exchanges have suspended operations in Japan. In hindsight, it is actually good news. Only the cryptocurrency exchanges which are serious about the business will continue to operate. The other cryptocurrency exchanges will seize the operations.
Also, there are quite a few newer companies which are looking to enter the cryptocurrency exchange business. With the increasing rules and regulations, only the companies which are completely serious about cryptocurrency business will enter it. Moreover, they need to have a certain period of capital as well. As a result, you can be sure that the company which will get the licenses will be well funded as well. This will protect the investors. Moreover, these companies will be able to take adequate security measures as well as provide proper services to the investor which is an added advantage.
When you look at the increased rules and regulations by Japanese regulators, you will realize that these rules and regulations actually benefit the investors. When only the real cryptocurrency exchanges are offering services to the consumers, you can be sure that the problems of hacking, as well as other glitches, will go down significantly.