The Japans’s Financial Services Agency (FSA) had held a meeting to plan regulation on cryptocurrency wallets and its services.
Some months back we had seen that the FSA of Japan is going to tighten the rules and regulations for crypto exchanges. This was due to the number of hacks which took place and the FSA wants to safeguard the investors.
But now they also are planning to regulate cryptocurrency wallet services. As per the report by news.bitcoin.com, There was an FSA group meeting taken place on Monday. And the major topic of the meeting was to regulate cryptocurrency wallet services.
One of the Itmedia publication in Japan said,
“Wallets are like bank accounts that store virtual currencies, handle large amounts of virtual currencies like exchange companies, they are not targeted by laws and regulations.”
Thus the FSA says that, since the cryptocurrency wallets manage payments there is a need for financial regulation for them.
Regulating Cryptocurrency Wallet Services.
To implement this regulation, they are planning to combine it with international standards for preventing money laundering and terrorism financing. Thus the FSA has come up with “revised FATF standards” which consist of their regulation for cryptocurrency wallets services and crypto exchanges.
The rules provided to the cryptocurrency wallet services would be to have a standard internal control system. Cryptocurrency needs to be managed separately for customers and service providers. There must be a written police for stolen funds during hack and how the customers will be repaid.
The Registration of Cryptocurrency wallets with the FSA is to be further be discussed. But, without registration new businesses won’t be able to add customers or cryptocurrencies. Business who are refusing to register must declare on their website that “The business will be abolished”. The businesses must always post their status of registration on their website.
This is some of the rules insisted by FSA for cryptocurrency wallet services. We need to wait to see after implementation results.
Let us know what you think of FSA regulating Cryptocurrency Wallet Services and is it required?