Japan Eyes Stricter Oversight On Crypto Management Companies

Japan Eyes Stricter Oversight On Crypto Management Companies


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According to reports, Japan’s Financial Services Agency is preparing new rules that would force companies providing management systems to crypto exchanges to give prior notice or register before they start work.

The proposal came up for discussion at a working group meeting on November 7. Regulators say the move is meant to tighten checks on outside firms that handle trading systems or custody services for exchanges.

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Work Group Moves To Tighten Rules

Under current law, exchanges must follow strict rules for holding users’ money, including storing funds in cold wallets. But outside vendors that run trading software or custody tools operate without the same legal footprint.

Regulators say that gap leaves

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