How Japan’s new PSA guidelines will impact crypto Exchanges

• bitbank has just started integrating alterations to make it compliant with the nation's revised payment services act scheme.
• A spokesperson for the exchange, says that local platforms are responding to the modifications of crypto laws which were first proposed last year.

bitbank, the well-known cryptocurrency platform based in Japan has just started integrating alterations to make it compliant with the nation's revised payment services act scheme.

A spokesperson for the exchange, Atsushi Kuwabara says that local platforms and regulatory entities are responding to the modifications of crypto-related laws which were first proposed last year by the Japanese House of Representatives.

Under the new ruling of the payment services act, references to cryptocurrency need to be replaced with the term ‘crypto-asset’. As of the start of this month platforms that operate in Japan need to manage their consumer's money separately from their own cash flow meaning that a third-party operator may need to be contacted in order to keep hold of customers' finances. In April, the Japanese cabinet ordinance updated these restrictions requiring that users' money needs to be entrusted.

In response to this, one crypto platform, BitMEX closed its Japanese services at the end of April.

Under the new guidelines, that’s forms will now have reliable methods to manage their consumers' finances. In the new guidelines, it references cold wallets and highlights that hot wallets can be used as long as they hold the same kind and same quantities of crypto assets as the user in question.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!