Japan’s Cryptocurrency Industry Launching Self-Regulatory BodyFebruary 16, 2018 3:20 pm
A new self-regulatory entity merging Japan’s two primary cryptocurrency industry groups has been formed following the recent $530 million hack of Tokyo-based exchange Coincheck, Cryptocoinsnews reported.
The unnamed new entity will launch April 1, Nikkei reports, one year after Japan’s revised Payment Services Act kicked in.
The new self-regulatory body will see the unification of the Japan Blockchain Association and the Japan Cryptocurrency Business Association, the report said.
The new entity seeks to quickly enforce self-imposed rules surrounding the protection of exchange users’ assets, system downtimes, insider trading and even advertising, the report said.
Additionally, penalties for breaches will also be considered, the report said. The self-regulatory body seeks to foster confidence from the public and the conventional financial industry in the cryptocurrency space, particularly in the aftermath of a major hack, Cryptocoinsnews reported.
Creating a self-regulatory body were fast-tracked following last month’s hack of cryptocurrency exchange Coincheck, now seen as the biggest cryptocurrency theft ever, the report said. A basic agreement toward the unified self-regulatory body on Thursday hinted at bitFlyer CEO Yuzo Kano becoming the body’s vice-chairman at launch.
Under the revised Payment Services Act, Japanese exchanges are mandated to register with Japan’s financial regulator, the Financial Services Agency, to acquire a special license before commencing operations, the report said. Exceptions are made for operational exchanges predating the new legislation, in which Coincheck is a notable example.
The new law also allows registered cryptocurrency exchange operators to form a voluntary self-regulatory body, the report said. However, the FSA reportedly refused to allow two separate self-regulatory bodies to operate, thereby leading to the merged organization.
– WN.com, Jack Durschlag