Japan's JCBA Publishes 347 Security Checks for Crypto Contractors

JCBA, a Japanese crypto industry group, published a draft Oct. 20 with 347 security checks for outsourced crypto service providers, including measures addressing private keys and transaction signing.

The checks span 10 areas, including management of third-party suppliers. They address private-key creation and storage, separation of hot and cold wallets, and verification of transaction signing.

The draft sorts providers into five categories based on whether they hold private keys and their system-control authority. It sets out security measures for each category.

The guide covers contractors serving crypto exchanges, wallets and signing systems. Wallet and signing-service contractors have faced frequent cyberattacks in recent years, while traditional SOC 2 audits may not fully cover risks unique to crypto assets.