Japanese Official Concedes Self-Regulatory Status to Cryptocurrency Industry. After keeping a close eye on the cryptocurrency industry for quite some time and understanding the pros and cons, Japan’s Financial Services Agency (FSA) finally gave the cryptocurrency industry self-regulatory status, permitting the Japan Virtual Currency Exchange Association to police and sanction exchanges for any violations.
An official of the Japanese FSA noted that the cryptocurrency industry was moving a fast pace. The official also said that experts in the industry were better suited to make the rules than bureaucrats.
Japanese Official Concedes Self-Regulatory Status to Cryptocurrency Industry. The body has confirmed the endorsement with a statement on the website stating:
“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 self-regulation becomes effective immediately, starting Oct. 24, with the core rules and guidelines already published on the JVCEA’s website. The watchdog has 15 employees so far, but it is planning to increase staff up to 20 people by November, according to Cointelegraph Japan.
The JVCEA established in April 2018, consists of 16 companies registered as cryptocurrency exchanges. The group’s formation came after the January hack of more than $534 million of NEM from Japan-based crypto exchange Coincheck.
The JVCEA describes its duties as inspecting the security of crypto exchanges in the country. As well other specific tasks like assessing tokens issued in Initial Coin Offerings (ICO).
Apart from this self-regulation status, the Japanese regulator FSA also published a set of guidelines for those applying to run cryptocurrency exchange in Japan. The agency said there are about 160 entities that expressed interest. The newly formed exchanges have to compulsorily register with FSA.
Last year, Japan became the first country to regulate cryptocurrency exchanges, as it encourages technological innovation while ensuring consumer protection.