JAPAN WANTS CRYPTO EXCHANGES TO ESTABLISH RESERVE FUNDS IN CASE OF HACKS
🔸 The Japanese financial agency (FSA) is preparing a law requiring crypto exchanges to set aside reserve funds to compensate customers in the event of a hack, similar to bank insurance.
🔸 The exchange will no longer be exempt for holding cold wallets, and the new law will clearly stipulate how to return assets in case of bankruptcy, similar to the stock market.
🔸 This move comes after a series of major hacks in Japan such as Mt. Gox, DMM Bitcoin (~305 million USD) and SBI Crypto (~21 million USD).
🔸 New regulations help increase user trust but raise the operating costs of the exchange, so the FSA should consider allowing the purchase of insurance instead of keeping all cash reserves. #ReboundTokenstoWatch
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JAPAN WANTS CRYPTO EXCHANGES TO ESTABLISH RESERVE FUNDS IN CASE OF HACKS
🔸 The Japanese financial agency (FSA) is preparing a law requiring crypto exchanges to set aside reserve funds to compensate customers in the event of a hack, similar to bank insurance.
🔸 The exchange will no longer be exempt for holding cold wallets, and the new law will clearly stipulate how to return assets in case of bankruptcy, similar to the stock market.
🔸 This move comes after a series of major hacks in Japan such as Mt. Gox, DMM Bitcoin (~305 million USD) and SBI Crypto (~21 million USD).
🔸 New regulations help increase user trust but raise the operating costs of the exchange, so the FSA should consider allowing the purchase of insurance instead of keeping all cash reserves.
#ReboundTokenstoWatch