The Japanese Financial Regulator has released five new criteria for all active cryptocurrency exchanges in Japan.
The new five criteria will be imposed on both existing exchanges and for the ones who are registering for the first time.
On-site inspections will be conducted on all exchanges prior to approval.
Here are the Five New Rules:
- The agency will ensure that exchanges “will not store currency in internet-connected computers and will have to set multiple passwords for currency transfers,”
- Exchanges “will need to work harder to prevent money laundering, through such means as verifying customer identification for large transfers.”
- The FSA wants to ensure that they are “carefully managed separately from exchange assets.”
- “Those granting a high level of anonymity and easily used for money laundering will as a general rule be banned.”
- They “will need to separate shareholders from management. System development roles will also be separated from asset management roles to keep employees from manipulating the system for their own gain.”