The Japan Association of Cryptocurrency Exchanges will tighten self-regulation

As a result of another hacker attack that occurred in early September, a group of cryptocurrency exchange operators are planning to tighten self-regulatory measures that must be observed when managing client assets.

The Japan Cryptocurrency Exchange Association will set limits on the number of digital assets that can be managed online. The maximum amount of assets allowed will be 10 to 20 percent of customer deposits. The association plans to change its rules, developed in July, after they are confirmed by the Financial Services Agency in accordance with the Payment Services Act.

During the latest attack on the exchange, which is operated by the company Tech Bureau Corp, $60 million in cryptocurrency was stolen. The exchange managed these funds online, of which 4.5 billion yen belonged to clients. A similar incident occurred on the Coincheck exchange in January, from which 58 billion yen in digital currency NEM was stolen. The stolen assets belonged to clients and were also managed online.

Cryptocurrency exchanges typically store the bulk of client assets in cold storage wallets for security reasons, but some assets are available online for transactions.

Experts believe that Tech Bureau, may have held too many assets online.

According to japantimes.co.jp