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EXCLUSIVE: Japanese Industry Group to Tighten Rules on Crypto Asset Management

  • September 29, 2018
  • , Jiji Press , 6:38 p.m.
  • English Press

Tokyo, Sept. 29 (Jiji Press) — A group of Japanese cryptocurrency exchange operators will tighten its self-regulatory measures on the management of customer assets, in the wake of another cryptocurrency theft through hacking earlier this month, informed sources told Jiji Press on Saturday.

The Japan Virtual Currency Exchange Association will set a ceiling on the amount of digital currencies managed online, according to the sources. The ceiling is likely to be around 10 to 20 pct of customer deposits, they said.

The industry group will shortly revise the self-imposed rules, drawn up in July, and implement them once it is certified by the Financial Services Agency as a self-regulatory body under the payment services law.

In the recent hacking case, about 7 billion yen worth of cryptocurrencies was stolen from an exchange run by Tech Bureau Corp. Of the stolen money, which was managed online, 4.5 billion yen belonged to its customers.

The incident followed a similar case involving major exchange Coincheck in January, in which 58 billion yen in customer assets in digital currency NEM were stolen. The affected assets were also managed online.

Cryptocurrency exchanges usually keep offline large portions of digital currencies owned by customers, for security reasons, but some portions are connected to the Internet, so that they are available for transactions.

Industry sources suspect that Tech Bureau may have exposed too large portions of cryptocurrencies to the Internet.

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