Reuters: Japanese Regulators to Introduce New Rules Regarding Exchanges’ Cold Wallets

Japan’s Financial Services Agency will reportedly introduce new rules regarding cold wallets for storing cryptocurrencies. Japan’s Financial Services Agency (FSA) will reportedly introduce new rules regarding cold wallets for storing cryptocurrencies at crypto exchanges, Reuters reported on April 17.Citing a source familiar with the matter, Reuters reports that the country’s financial regulator will reportedly require cryptocurrency exchanges to strengthen internal supervision of cold wallets — devices for storing digital currency which are not connected to the Internet.By implementing the new regulation, the FSA purportedly addresses the difficulties of ensuring the security of digital currencies and other risks for the country since it intends to boost the fintech industry to stimulate economic growth.Although cold wallets are not connected to the Internet and, therefore, provide better security to digital assets, the FSA suggests there could be risks of internal theft.…

Chainalysis Urges FATF to Rethink Data Demands on Crypto Exchanges

The FATF has required what the company calls “onerous” reporting and record-keeping of exchanges. Blockchain analysis firm Chainalysis has hit back at recommendations from intergovernmental financial anti-crime organization the Financial Action Task Force (FATF) in a direct letter dated April 8.The letter, which Chainalysis sent to the FATF, criticizes the organization’s demands to make cryptocurrency exchanges identify and keep records of senders and recipients involved in cryptocurrency transactions.These demands had surfaced at the end of February, with the FATF subsequently inviting public feedback on its literature.According to Chainalysis, such requests would place exchanges, which the FATF calls “Virtual Asset Service Providers (VASPs),” in an almost impossible position.Should exchanges shut down due to non-compliance, illicit activity would be driven underground to decentralized platforms, making fighting crime harder, not easier, for authorities, Chainalysis argues.“There is no infrastructure to transmit information between VASPs today, and no one has the ability to change how virtual asset blockchains work,” the letter reads.…