Japan’s Financial Services Agency will introduce new rules regarding cold wallets for storing crypto at crypto exchanges

Japan’s Financial Services Agency (FSA) will reportedly introduce new rules regarding cold wallets for storing cryptocurrencies at crypto exchanges, Reuters reported on April 17.

Citing a source familiar with the matter, Reuters reports that the country’s financial regulator will reportedly require cryptocurrency exchanges to strengthen internal supervision of cold wallets — devices for storing digital currency which are not connected to the Internet.

By implementing the new regulation, the FSA purportedly addresses the difficulties of ensuring the security of digital currencies and other risks for the country since it intends to boost the fintech industry to stimulate economic growth.

Although cold wallets are not connected to the Internet and, therefore, provide better security to digital assets, the FSA suggests there could be risks of internal theft. According to the source, a number of exchanges do not have a policy where the person responsible for the storage would be regularly rotated out.

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Source: https://cointelegraph.com/news/reuters-japanese-regulators-to-introduce-new-rules-regarding-exchanges-cold-wallets