BY CNA team - August 7, 2018
Japanese crypto-exchange body apply for formal recognition
The self-regulatory body representing Japanese government-approved cryptocurrency exchanges is applying to be formally recognised by the country’s financial watchdog, the Financial Services Agency (FSA).
The Japan Virtual Currency Exchange Association (JVCEA), which represents the 16 exchanges already licensed by the FSA, says the move will enable the association to be recognised as a “certified fund settlement business association”.
The JVCEA was formed on April 23 from the Japan Blockchain Association and the Japan Cryptocurrency Business Association to restore investor confidence that had been shaken by the lost of US$530mil through a hack of the Coincheck exchange in late January.
Quoting the To-O Nippo Press, Asia Times, an online news site, says the FSA certification process includes a two-month review to “carefully examine the affairs of the Association and investigate whether proper group management can be expected”.
According to earlier reports, the JVCEA is working on tightening anti-money laundering (AML) measures, and has submitted a document of the self-regulatory measures to the FSA
A number of the JVCEA member exchanges were penalised by the FSA for failing to comply with AML measures in late June.
In March, following the Coincheck hack, and before the formation of the JVCEA, seven exchanges were penalised by the FSA, which found them lacking in proper internal control systems, risk management and know-your-customer measures. Two were ordered to halt operations for a month.