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The news coming to Ethereum World News indicates that the Japanese self-regulatory organization known as The Japan Virtual Currency Exchange Association (JVCEA) has welcomed five new cryptocurrency exchanges into their ranks. The entry of these 5 cryptographic exchanges is unique in the sense that until now the members of JVCEA were regulated by cryptographic exchanges. The new members have not yet received FSA approval to operate in Japan. As a result, they join the JVCEA as a different second class of members.
Among the new members, three are classified as "cryptocurrencies" because their applications with the Financial Services Agency (FSA) to become cryptocurrencies are currently under review. The three exchanges are Coincheck, Bitbody of Everbody is Lastroots. The other two members are not yet registered with the FSA and are not authorized to operate in Japan. They are Lvc Corp. is Coinage Corp.
Another 16 members of JVCEA
The other 16 members of JVCEA are as follows.
- Money Partners Inc.
- BitFlyer Corporation
- QUOINE CORPORATION
- Bit Bank Corporation
- SBI Virtual Currencies Corporation
- GMO Coin Co. Ltd
- Bit Trade Co. Ltd
- BTC Box Corporation
- Bit Point Japan Co. Ltd
- DMM Bitcoin Inc.
- Bito Argo Exchange Co. Ltd
- Bitgate corportation
- BitOcean Co. Ltd
- Fiscal Virtual Currency Exchange Inc.
- Tech Bureau Inc.
- Xtheta Corporation
Self-regulation in Japan
The decision to self-regulate cryptographic exchanges in Japan was approved by the FSA at the end of October last year. This decision formed the Japan Virtual Currency Exchange Association (JVCEA). This entity oversees all virtual currency trading operations in the country.
History of Japanese cryptographic exchanges subjected to hacking
2018 was a year in which the crypto community underwent major cryptographic exchanges that were violated. The Coincheck exchange, which is based in Japan, lost over $ 500 million in NEM token due to hackers. Zaif – another cryptographic platform based in Japan – lost $ 60 million in BTC, MONA and BCH, even for hackers.
These huge losses prompted the FSA to crack down on cryptocurrency exchanges by ensuring that users' funds were in good hands.
Measures to protect customer funds
JCVEA has proposed various measures to protect both encrypted traders and exchanges. Some of the measures include only the use of the 4x lever on margin trading and the setting of a limit on the amount of digital resources managed online in the hot portfolios owned by the stock exchanges. Other recommendations include the cessation of advertising, promotion or the encouragement of speculative trade by cryptographic exchanges in the country.
What are your considerations on whether the Japanese cryptographic exchanges are authorized for self-regulation by the FSA? Let us know in the comments section below.
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