Japanese Crypto Exchanges File to Form Self-Regulatory Organization

Sixteen Japanese cryptocurrency exchanges have applied to form a certified self-regulatory organization for the industry.

AccessTimeIconAug 6, 2018 at 5:35 p.m. UTC
Updated Aug 18, 2021 at 9:35 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

A group of Japanese cryptocurrency exchanges have formally submitted a detailed proposal to form a self-regulatory organization to the nation's Financial Services Agency (FSA).

The Japan Virtual Currency Exchange Association (JVCEA), which was formed by 16 exchanges in March and registered with the FSA in April, has applied to become a "certified fund settlement business association," the Asia Times reported Monday. This would effectively allow the JVCEA to impose self-regulatory rules on the cryptocurrency trading market as part of an effort to create stricter industry standards.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • A working draft of the proposed rules in the nearly 100-page document would require cryptocurrency exchanges to regularly conduct audits, as well as prohibit certain anonymous cryptocurrencies from being traded such as monero or dash, Nikkei Asia reported last month.

    Even more recently, the JVCEA said it also wished to limit the amount of borrowing when it came to margin trading, that is trading with borrowed money, to be at a maximum of four times an investor's original deposit, as previously reported by CoinDesk.

    These suggestions by the association aim to prevent repeats of troubling incidents such as the Coincheck hack in which an estimated $533 million was taken from the exchange's digital wallets.

    It also follows from trends by Japan's Financial Services Agency themselves to crackdown on the cryptocurrency industry by more closely inspecting the activity of licensed cryptocurrency exchange operations, issuing "business improvement orders" aimed at enhancing internal-auditing and user-protection systems.

    Documents image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.