FSA Officially Approves JVCEA To Offer Self Regulation Platform
The main financial regulator the FSA has officially approved the launch of the JVCEA to enact self-regulation.
Crypto Self Regulations Association Approved In Japan
The Japan Virtual Currency Association has been officially approved by the FSA. The body was formed to oversee operations of all local crypto trading platforms in the Asian country. This has been viewed as a major step toward answering the regulatory puzzle in many jurisdictions. The JVCEA is made up of all members from the 16 legally recognized exchanges in the country.
The main mandate of the association will be to come up with regulations for crypto trading platforms. The agency will take the lead in coming up with solid laws to stop price manipulations either on or by exchanges. Additionally, it will be required to spearhead consumer protection through fighting crimes such as money laundering.
The idea of JVCEA first emerged in April this year. It was meant to provide a platform for self-regulating the industry. The need for a crypto regulator emerged after the infamous $530 million hack on Tokyo’s Coincheck exchange back in January.
Four months later, the exchanges managed to present an official application before the FSA. The FSA then started a crucial review of the regulations for the past two months. The FSA focused mainly on determining if the association can provide efficient group management.
The JVCEA confirmed the approval on Wednesday through a post on its website. The statement added that the self-regulation will take effect immediately. Authors of the post said that they will keep on finding measures to enhance trust among customers within the industry.
At the moment, the FSA is involved in the most crucial phase of reviewing the general approach towards cryptocurrencies from the regulatory point of view. The review was made necessary following two hacks in the country. Apart from CoinCheck, Zaif crypto exchange platform was also effected last month. During the hack, bitcoin cash and monocoin were stolen.
Reports indicate that the JVCEA regulation is made up of 100 pages. It has an elaborate proposal to bar internal trading. Additionally, it seeks to ban Monero and Dash from all legalized exchanges within Japan. We also have an elaborate proposal on having a cap on the funds clients can borrow on their initial deposits.