Japanese Crypto-Exchanges File for Self-Regulation
Japan’s Financial Services Agency (FSA) has seen an official proposal handed in by several digital currency exchanges within Japan requesting the creation of an organization based on self-regulation. The country’s digital exchange association (JVCEA) consortium including 16 different crypto-exchanges approved by the FSA earlier this year has just applied for a certification of fund settlement business identity.
Through the certification, the JVCEA will be permitted to provide self-regulation aimed at the cryptocurrency trading market as a means of enforcing more restricted standards within the industry. An active bill of the suggested regulations has stated a requirement to periodically initiate audits and hinder any unidentified crypto-assets from trading like Monero coins.
Additionally, the association has expressed a deep desire to lower the lending rates in regards to margin trading, essentially conducting trades with funds that have been borrowed. The new limitation would bring the amount borrowed to quadruple an initial deposit placed by an individual as reports have stated.
These new regulations come as a means by the JVCEA to present and install defensive measures to avoid another incident like the hacking of Coincheck, resulting in a massive loss of over $500 million USD from user wallets.
This also goes side by side with several trends the FSA has implemented in terms of cracking down on the digital industry through intricate investigations and reviewing issued licenses to crypto-exchanges and handing over new conditions for enhancing businesses to live up to regulatory standards of protection.