The Japan Virtual Currency Exchange Association (JVCEA) is readying itself for tighter rules on its customer funds management.
According to The Japan Times, the association – which is made up of cryptocurrency exchange operators in Japan – has decided on clamp down on the amount of digital currencies that are managed online. The limitation has come following reports of yet another hacking incident in the country.
The limit to be set by the regulatory authority is probably going to be between 10 and 20%, according to the report’s sources. The Times Japan also stated that JVCEA is to investigate their internal rules which were outlined in July. Once the rules have been revised, the association plans to get them to certify through the country’s Financial Services Agency according to the payment services law. Following this, the rules will be officially implemented.
The cause for the association’s caution happened earlier this month. Zaif, a massive cryptocurrency safe exchange, saw itself fall victim to a ¥6.7 billion yen attack (approximately $59.7 million USD). In the hack, funds from both the exchange and customers were plundered, following an “oversight” in the company’s security.
At the time, the exchange suspended all trading and systems remain halted since the attack.
— Zaif – 暗号通貨取引所 (@zaifdotjp) September 23, 2018