Cryptocurrency being the center of attention consists of probable risks that need to be addressed from time to time. Many watchdogs are aware that this concept involves huge perils and it can threaten the economy. Therefore, Japan’s top financial regulator has unveiled a plan to regulate crypto wallet services to curb cryptocurrency misuse.
The financial regulator has proposed a number of measures that need to be incorporated to regulate virtual currency apps. The supervisors are well acquainted with the risks associated with the wallet services such as stolen funds, wallet failures, money laundering etc.
The Financial Services Agency (FSA) held its ninth cryptocurrency study group meeting recently. The group discussed the potential threats involved and decided to implement stringent laws to prevent money laundering and terrorism financing. The agency wrote that the “revised FATF standards” must be imposed, including their recommendations relating to crypto exchanges, wallet service providers, and initial coin offering issuers.
The FSA further elaborated that the current law does not regulate crypto wallet services since they do not buy or sell cryptocurrencies. However, as they manage payments, it is essential to regulate the virtual apps that deal in crypto money. The regulations for wallet services will be in line with the international standards for averting any misuse in cryptocurrency, as stated on Bitcoin News.
Meanwhile, recent discovery highlighted the presence of counterfeit apps in the Google Play Store. European cybersecurity researcher, Lukas Stefanko, discovered that four counterfeit virtual currency apps claimed to offer wallet services for NEO, MetaMask and Tether, as reported on Ethereum World News. Once the user installed the app, it would ask personal information like private keys and wallet password. Letting out these details would cost the victim his/her virtual coins. Overall, there is an urgency to implement certain regulatory measures to prevent the exploitation that is associated with crypto wallet services.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]