The biggest breakthrough in the crypto industry just happened in Japan. The country’s financial service agency approved the self-regulation status for crypto currency. They granted the Japan Virtual Currency Exchange the authority to monitor and sanction any trade related to crypto currency. A department at JVCEA’s laid down rules to ensure the security of investor’s funds and compliance among these exchanges. JVCEA would monitor the operations of Exchanges that are involved in virtual currency trading.
Unfortunately, Japanese crypto currency exchanges had to face more hacking attempts and losses in past years than western exchanges. This year alone, digital currency exchanges like Coincheck lost $523 million in NEM tokens, another exchange Zaif lost almost 6000 Bitcoin coins and other alt coins to hackers. This has made FSA to act fast to safe guard the rights of investors as well as their funds with these currency exchanges.
According to the FSA, crypto currency industry is growing at a face page and some standards/rules are much needed now than before. They think that experts in the industry are more capable to make the rules than bureaucrats. The crypto industry officials are happy with the new development. They said “We will make further efforts to build an industry that is trusted by customers”.
Yuri Suzuki, a senior lawyer suggest that the new rules are sever as compared to the present regulations. He add that the industry’s new status would help to regularize transactions and will help to get customer’s trust on digital coins. Currently, 160 digial currency exchanges are serving the clients throughout the country. Japanese FSA also published a guideline for anyone willing to establish virtual currency exchange in Japan. By the end of Q3, everything seem to be finalized.
This may seem exciting but JVCEA has to work a lot to make the regulations. The workload is going to be heavy. Despite they have more than 150+ applications for new crypto currency changes, Japan FSA hasn’t approved any new Digital currency exchange since December 2017. The FSA official said, “We are looking into more details than before. In that sense, the approval process has become more strict.”