“We have to keep 100% of client assets (of the same type and the same amount) in cold wallets every day,” said Takaaki Kato, head of sales and trading at Bitflyer, one of the largest cryptocurrency exchanges. from Japan. “If this is not met, we have to move crypto assets to cold wallets within five days under the regulations, but we basically do it within 24 hours. Client trust assets are in a trust bank etc with regular reporting to regulators and publicly disclosed quarterly so could be easily verified.”