• Japan will require exchanges to hold domestic safety reserves to protect customer assets.
• New rules extend oversight to third-party custodians and wallet providers.
• Authorities may classify some cryptocurrencies as bank-handled financial products.

Japan is preparing another overhaul of its digital-asset framework as regulators move to require cryptocurrency exchanges to maintain domestic safety reserves that protect customer funds during operational failures or security incidents.

According to officials working on amendments to the Payment Services Act, exchanges will be required to keep a portion of customer assets within Japan while holding new liability reserves designed to cover losses from hacks, unauthorized transfers, or internal system disruptions. The working group drafting the reforms is finalizing the technical details, building on revisions to the Payme…

Read The Full Article Japan Advances New Rules Requiring Crypto Exchanges to Hold Safety Reserves On Coin Edition.

• Japan will require exchanges to hold domestic safety reserves to protect customer assets.
• New rules extend oversight to third-party custodians and wallet providers.
• Authorities may classify some cryptocurrencies as bank-handled financial products.

Japan is preparing another overhaul of its digital-asset framework as regulators move to require cryptocurrency exchanges to maintain domestic safety reserves that protect customer funds during operational failures or security incidents.

According to officials working on amendments to the Payment Services Act, exchanges will be required to keep a portion of customer assets within Japan while holding new liability reserves designed to cover losses from hacks, unauthorized transfers, or internal system disruptions. The working group drafting the reforms is finalizing the technical details, building on revisions to the Payme…

Read The Full Article Japan Advances New Rules Requiring Crypto Exchanges to Hold Safety Reserves On Coin Edition.