Japan Establishes Self-Regulatory Body For Cryptocurrency ExchangesMarch 2, 2018 10:20 pm
Japan’s sixteen government-registered cryptocurrency exchanges are planning to establish a self-regulatory body that will help build trust for the industry after a massive heist in January allowed thieves to make away with $530 million in digital money, according to Reuters.
The body will also invite future cryptocurrency exchanges whose applications for registration with the Japanese government are still pending.
The body also said that they are open to register future exchanges as well, in a statement released on Friday.
The name and date for registration with the government are still undecided, but the exchanges said that it would likely be established this spring.
The details of the powers that the regulatory body would have were not immediately clear.
The body was created after hackers were able to make off with $530 million in digital currency from the Tokyo-based cryptocurrency exchange Coincheck Inc earlier this year.
The heist highlighted existing security concerns about trading the asset and raised questions about regulation of the industry in Japan.
The island nation became the first country last year to oversee cryptocurrency exchanges at the national level, attempting to protect customers and curb the illegal uses of cryptocurrencies while promoting a young and promising sector.
Along with the 16 registered exchanges, the regulatory body would allow another 16, including Coincheck, to continue operating while their applications to join the body are reviewed.
In February, Japanese cryptocurrency exchanges confronted another scandal when a mistake at one of the exchanges allowed investors to briefly purchase bitcoins for free, though none were able to profit off the error.
–WN.com, Maureen Foody