Japan Crypto Industry Got Self-Regulatory Status
The Japan Financial Services Agency (FSA), a primary financial regulator, has granted the cryptocurrency industry a self-regulatory status. From now on, the Virtual Currency Exchange Association (JVCEA) will regulate crypto actions.
Japan had two large crypto organizations: Japan Blockchain Association (JBA) and Japan Cryptocurrency Business Association (JCBA). Both institutions wanted to be self-regulatory organizations (SRO), after the infamous $530 million theft. The FSA has not granted this privilege to either of them. So, they’ve come up with idea of joining forces. The merge has established a new formation: Japan Virtual Currency Exchange Association (JVCEA).
The JVCEA unites all 16 licensed domestic cryptocurrency exchanges.
In August, the organization submitted an formal application with the FSA to get legal identification. The financial regulator conducted a two-month review to determine if the association can be trustworthy.
On Wednesday, the Japan Financial Services Agency approved the organization. It means that the JVCEA is a ‘certified fund settlement business association.’
According to the statement on its website, the newly-accredited body will create a reliable blockchain environment:
“With the acquisition of the accreditation, we will continue to make further efforts to create an industry that you can trust from everyone who uses virtual currency with members [exchanges].”
The state regulator requires from the industry body creating some guidelines for national exchanges. That includes strict measures to curb insider trading and money laundering. They also have to implement security standards for customer services.
According to the reports, the JVCEA has written a 100-page regulatory draft. The outline includes, among others, a complete trading ban on privacy coins like Dash and Monero. The organization also wants to implement a 4-to-1 limit, which means that investors will be allowed to borrow up to four times their original deposit.
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