Modern Slave
  • Home
  • Bitcoin
    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Komainu Receives Provisional Virtual Assets License in Dubai

    Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements

    Central Banks Are Working on a Monitoring System for Stablecoin Balance Sheets

    Central Banks Are Working on a Monitoring System for Stablecoin Balance Sheets

    Ramp Raises $70M to Provide Crypto Payments Infrastructure

    Crypto Wallet Security Layer Webacy Raises $4M

    Unpacking India's CBDC Pilots as Country Prepares for Digital Rupee

    Unpacking India’s CBDC Pilots as Country Prepares for Digital Rupee

    Ethereum Testnet Zhehiang Successfully Processes First-Ever ETH Staking Withdrawals

    Ethereum Testnet Zhehiang Successfully Processes First-Ever ETH Staking Withdrawals

    Crypto Exchange Bybit Announces $100M Fund to Support Institutional Clients

    Crypto Lender SALT Raises $64.4M to Resume Operations

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
  • Home
  • Bitcoin
    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Komainu Receives Provisional Virtual Assets License in Dubai

    Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements

    Central Banks Are Working on a Monitoring System for Stablecoin Balance Sheets

    Central Banks Are Working on a Monitoring System for Stablecoin Balance Sheets

    Ramp Raises $70M to Provide Crypto Payments Infrastructure

    Crypto Wallet Security Layer Webacy Raises $4M

    Unpacking India's CBDC Pilots as Country Prepares for Digital Rupee

    Unpacking India’s CBDC Pilots as Country Prepares for Digital Rupee

    Ethereum Testnet Zhehiang Successfully Processes First-Ever ETH Staking Withdrawals

    Ethereum Testnet Zhehiang Successfully Processes First-Ever ETH Staking Withdrawals

    Crypto Exchange Bybit Announces $100M Fund to Support Institutional Clients

    Crypto Lender SALT Raises $64.4M to Resume Operations

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
No Result
View All Result
Modern Slave
No Result
View All Result
Home Exchanges

How Japan handles crypto exchanges differently

by Source in article
January 25, 2023
in Exchanges
0
How Japan handles crypto exchanges differently

Illustration: Allie Carl/Axios

Japan’s crypto exchanges have different rules than exchanges in other parts of the world.

Why it matters: FTX Japan, by all reports, didn’t come up short on customer funds, and that could be attributed to the more stringent laws in place for how exchanges in Japan operate.

Flashback: In 2018, Japanese crypto exchange Coincheck had hundreds of millions of dollars worth of the NEM cryptocurrency stolen.

  • This followed one of the other most notorious hacks in crypto history, Mt. Gox, which was also based in Japan. A comparable amount had been stolen from that bitcoin-only exchange in 2014.

The legacy of those consumer losses made it urgent for Japan to create new rules for crypto exchanges, which are more stringent than what most other nations have done, according to the Atlantic Council’s Ananya Kumar, a part of the team behind the organization’s Crypto Regulation Tracker.

  • Of note: Coincheck was later acquired by the Monex Group for about $33 million, and received a license in 2019. Monex is interested in FTX Japan now, as well.

How it works: Kumar highlighted several key rules for such businesses in Japan, which include:

  • Customer assets and company assets must be held separately, with holdings verified in annual audits.
  • Exchanges have to be a member of a self-regulatory body recognized by the financial regulator.
  • Investors can’t trade at more than 2X margin on exchanges, which is vastly lower than elsewhere, the Japan Times reported.

Meanwhile, 95% of all customer funds must be held by the exchanges in cold wallets. That is, wallets not actively connected to the internet.

  • 5% of customer funds can be made ready for withdrawal by holding them in hot wallets, but the exchange has to self-insure whatever is in hot wallets with its own funds in its own cold wallets.
  • In other words, if there were a breach on the hot wallet, the exchange could cover it out of its own funds.

What they’re saying: “What’s brought about the latest scandal isn’t crypto technology itself,” Mamoru Yanase of Japan’s Financial Services Agency (FSA) told Bloomberg. “It is loose governance, lax internal controls and the absence of regulation and supervision.”

  • The FSA is urging the rest of the world to match Japan’s oversight.
  • “I think Coincheck was a big regulatory moment in Japan that didn’t effect other countries as much,” Kumar said.
  • Of note: There’s still some concerns about whether FTX Japan customers will get all their funds back, according to reporting from the Japan Times. Not because assets aren’t there, but because of unknown legal obligations to the original company.

The other side: Not everyone is enthusiastic about Japan’s rules.

  • They make it more expensive to run an operation there than elsewhere, which might be why U.S. exchanges, Kraken and Coinbase, both recently exited the country.

By the numbers: About 30 exchanges operate in the country, according to the Financial Services Agency. Some of those may include custodians, however, which are also subject to the rules.

Quick take: Customers may be better protected in Japan, but it’s also not exactly a hotbed of competitive crypto companies.

Source link

Recommended

Coinbase Trading Launch in India Hits Payments Gateway Snag

Coinbase Trading Launch in India Hits Payments Gateway Snag

10 months ago
US Treasury Answers Questions About Using Sanctioned Crypto Mixing Service Tornado Cash

US Treasury Clarifies How to Comply With Regulations on Sanctioned Crypto Mixing Service Tornado Cash – Regulation Bitcoin News

5 months ago

Popular News

    Chainlink Price Risks Nosedive if This Level Is Lost

    Can Chainlink (LINK) Bulls Reignite Price Action This Month?

    February 8, 2023
    elementus blockchain analytics

    Elementus Raises $10 Million to Bring Clear Blockchain Analytics to Institutional Customers – Blockchain Bitcoin News

    February 8, 2023
    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    February 8, 2023

    Must Read

    • Can Chainlink (LINK) Bulls Reignite Price Action This Month?
    • Elementus Raises $10 Million to Bring Clear Blockchain Analytics to Institutional Customers – Blockchain Bitcoin News
    • Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%
    • How will Bitcoin (BTC) Price Fare This Month?
    • UK Crypto Firms and Regulator Blame Each Other for Industry Exodus

    Category

    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    Important Pages

    • Home
    • Privacy Policy
    • Terms and Conditions
    • Social Media Disclaimer
    • Medical Disclaimer
    • FTC Compliance
    • Earnings Disclaimer
    • DMCA Compliance
    • Copyright Notice
    • Anti-Spam Policy
    • Contact Us

    About Us

    We provide latest News related to CryptoCurrency.

    • Home
    • Contact Us
    • Terms and Conditions
    • Privacy Policy
    • Copyright Notice

    © 2021 Modernslave.io

    No Result
    View All Result
    • Home
    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    © 2021 Modernslave.io

    By continuing to browse the site you are agreeing to our use of cookies
    x Logo: Shield Security
    This Site Is Protected By
    Shield Security →

    Subscribe For Latest Updates

    Sign up to best of crypto news, informed analysis and opinions on what matters to you.

    Invalid email address
    We promise not to spam you. You can unsubscribe at any time.
    Thanks for subscribing!