BY CNA team - October 25, 2018
Japan’s self-regulatory crypto body formally recognised
Japan’s self-regulated crypto association has been accredited by the country’s financial watchdog and can now set and enforce its own rules.
The Japan Virtual Currency Exchange Association (JVCEA) posted a notice on its website that the Financial Services Agency (FSA) has formally approved the body as a self-regulatory body.
The FSA has certified the JVCEA as a “settlement company association”, which will give the association the power to set the rules and enforce them.
The JVCEA, which applied to the FSA for formal recognition in August, is comprised of 16 members.
It was set up in April by the Japan Blockchain Association and the Japan Cryptocurrency Business Association in the wake of the US$530mil Coincheck crypto exchange hack in January.
The association says that following the FSA certification, it will now formally start work with the self-regulatory rules.
Members had recommended in July that a cap be imposed on how much margin traders can borrow based on their deposits with the exchanges.
Following the US$62mil Zaif exchange hack in mid-September, the JVCEA also planned to set a ceiling on members’ crypto holdings managed online.
The FSA has been clamping down on the crypto exchanges this year and imposed penalties following the Coincheck hack and again in June after inspecting the offices of the exchanges.