Japan’s Financial Services Agency (JFSA) is
reportedly cracking down on cryptocurrencies, in a move
that could see it changing its existing exchange rules. It is
looking into tightening the regulation of exchanges by moving
them under the remit of the Financial Instruments and Exchange
Act (FIEA) rather than the Payment Services Act.
After the $530 million Coincheck theft in January, all
exchanges were investigated. Coincheck was ordered to raise its
security standards and to submit a report on preventative
measures to avoid a future attack. The cyber heist has raised
alarm bells for the JFSA, and it intends to keep a closer eye
on the operations of exchanges, especially on security measures
to protect customers.
According to Naoya Ariyoshi, partner at Nishimura &
Asahi, if cryptocurrencies fall under the FIEA, they will be
regulated as securities so there is a possibility that the
regulations on virtual currency exchange service...