An association of sixteen Japan-based national cryptocurrency exchanges has formally requested certification from the country's financial regulatory authority to form a self-regulatory body.
The Japan Virtual Currency Exchange Association (JVCEA), a body comprising all 16 licensed cryptocurrency grants, is seeking to become a "certified fund settlement firms association" after a formal request submitted to the 39; Financial Services Agency (FSA), Japan's main financial regulator.
The working group is also looking to work with the authorities to create guidelines and legislation that ultimately enable the domestic cryptocurrency sector to self-regulate, according to Asia Times.
According to the report, the FSA certification process will go through a rigorous two-month review where the authority "will carefully examine the business of the Association and investigate the proper management of the group"
The JVCEA was established in March, as reported by CCN at that time, launched as a concentrated effort among the authorized exchange operators to safeguard investors and regain confidence in the sector in the aftermath of an earthquake of $ 530 million in exchange hack based in Tokyo Coincheck.
The group is now seeking certification to promote the cause, claiming that its recognition as a fund business association would help "the development of the virtual currency exchange industry and the protection of user interests."
The JVCEA has already elaborated self-regulation rules in a 100-page draft, proposing measures such as banning the trade of privacy-focused currencies – Monero and Dash are noteworthy examples – and imposing a strict ban on insider trading. The industrial group will have to obtain the certification before adopting and imposing these rules between the exchanges of members.
Less than two weeks ago, the association also proposed a plan to impose a 4 to 1 limit on trading margin to limit the risk of losses in a brand and that currently does not see restrictions on trade on loan.
In recent months, the Japanese FSA has increased its control over the national cryptocurrency industry. In June, the regulator slapped six licensed exchange operators with orders to improve the business, pushing to the point of refusing a request to register an exchange for the first time earlier that month.
Although not confirmed, the FSA is also said to be reviewing its existing regulatory framework for the sector. Specifically, the regulator appears to be trying to regulate the sector under the Securities and Exchange Act (FIEA), a move that would lead to cryptographic exchanges under the laws applicable to traditional securities firms and securities firms.
image from Shutterstock.
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