Japan Approved Self-Regulation for Cryptocurrency




Symbol Use to Represent Cryptocurrencies

Japan's Financial Services Agency (FSA) on Wednesday gave the cryptocurrency industry self-regulation status, permitting the Japan Virtual Currency Exchange Association (JVCEA) a body comprised of all 16 licensed domestic cryptocurrency exchanges, to become a certified fund settlement business association police and sanction exchanges for any violation.

The industry association confirmed its accreditation in a statement on its website, stressing it has "enforced self-regulation rules on the same date."

It added:
"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  FSA's approval comes at a time when Japanese authorities are reviewing their own regulatory approach toward the industry in the aftermath of two seismic crypto thefts this year. After the infamous Coincheck theft in January, licensed cryptocurrency exchange Zaif was hacked for nearly $60 million in bitcoin, bitcoin cash, and monacoin in September according to CCN.

JVCEA has reportedly drawn up a 100-page self-regulatory draft with rules including a proposal a complete ban on insider trading and privacy coins like Monero Dash from licensed exchanges. The association has also proposed a 4-to-1 limit on margin trading with cryptocurrencies, restricting the number of funds investors can borrow on their original deposit.


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