Japanese regulators have announced stricter regulations for cryptocurrency exchanges in an effort to prevent another heist like the one that befell Coincheck in January, according to Nikkei Asian Review. The country’s Financial Services Agency expects to begin using a new, stricter framework for registered cryptocurrency exchanges this summer, and will advise those that fail to meet its new rules to discontinue operations. Both new and existing operators will be required to meet the new standards.
The government has shifted its focus to strengthening consumer protection measures after initially recognizing virtual currencies as a valid form of payment in the interest of supporting the evolving technology.
The agency stated in April that new processes are needed for cryptocurrency exchange registrations that extend beyond simple documentation to include onsite investigations of how the operations are managed.