The government of Japan Reveals Crypto Industry Self-Regulation Expectations and Plans

The government of Japan Reveals Crypto Industry Self-Regulation Expectations and Plans

virtual currency exchanges

Japan’s Financial Services Agency has made known its expectations for the self-regulation of virtual currency exchanges in Japan during a recent interview. A self-regulatory organisation has been approved by the agency of which it is working closely with, in order to prevent violation of the regulations. There are 16 regulated crypto exchanges in Japan and all of them are members of the self-regulatory organisation.

Japan’s Virtual Currency Exchange Association (JVCEA

Also, Japan’s top financial regulator has assigned the Virtual Currency Exchange Association (JVCEA), to the position of a Self-Regulatory Organisation (SRO) under the Payment Services Act. The JFSA further explained that it is of the notion that the SRO will make decisions flexible enough to keep up with crypto-assets and its rapidly changing surrounding.

The association confirmed this in a statement which reads: “We think it necessary [for us] to work with the Jvcea closely so that the association can successfully perform self-regulatory functions through the establishment and application of self-regulatory rules and monitoring of their members.”

Furthermore, it is expected of the association to works hand in hand with the JFSA to oversee and instruct its members to handle their businesses in the right way.

Also, it is expected of the association to give detailed wallet management processes from the point of view of system security and cross-sectoral laws in regions that are not under the binding of the rules and regulations. e.g., use of margin trading for the customer’s protection.

The agency further stated that: “We expect that through self-regulation, clearer and more detailed rules will be provided as to provisions that are not specified under the existing laws/regulations, as well as self-discipline in areas that are not covered by the laws and regulations.”

16 Registered Crypto Exchanges

The 16 registered virtual currency exchanges in Japan are members the JVCEA. At first, only registered companies were allowed to join the association. However, it extended its membership to other virtual currency operators after it was allowed SRO status.