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Japan unveils the self-regulation expectations of the cryptocurrency industry

Japan unveils the self-regulation expectations of the cryptocurrency industry

Regulations

In an exclusive interview with the news. Bitcoin.com, Japan's leading financial regulatory body revealed its expectations for self-regulation of cryptocurrency trading in Japan. The agency has approved a self-regulation organization, which is working closely to ensure compliance. All 16 regulated cryptographic exchanges in Japan are members of this self-regulatory organization.

Read also: The Indian Supreme Court moves the cryptographic hearing, the community asks for positive regulations

Working together

<img class = "size-medium wp-image-266290 alignright” title=”Japan unveils the self-regulation expectations of the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/japan-fsa-300×174.png” alt=”Japan reveals expectations for self-regulation of the cryptocurrency industry "width =" 300 "height =" 174 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/ 12 / japan-fsa-300×174.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/japan-fsa-768×444.png 768w, https://news.bitcoin.com/ wp-content / uploads / 2018/12 /japan-fsa-696×403.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/japan-fsa-726×420.png 726w, https: //news.bitcoin.com/wp -content / uploads / 2018/12 / japan-fsa.png 788w "sizes =" (maximum width: 300px) 100vw, 300px”/>The Japan Financial Services Agency (JFSA), the country's main financial authority, granted the status of self-regulated organization (SRO) of the Japan Virtual Currency Exchange Association (SRO) under the Law on Payment Services October.

The JFSA has explained to news.Bitcoin.com to believe that "the OAD can take flexible actions to keep up with the rapidly evolving environment surrounding the cryptocurrencies", adding:

We think it is necessary [for us] collaborate closely with Jvcea so that the association can successfully perform self-regulation functions through the establishment and application of self-regulation rules and the monitoring of its members.

<img class = "size-medium wp-image-266296 alignright” title=”Japan unveils the self-regulation expectations of the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/regulation-300×196.png” alt=”Japan reveals expectations for self-regulation of the cryptocurrency industry "width =" 300 "height =" 196 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/ 12 / regulation-300×196.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/regulation-768×502.png 768w, https://news.bitcoin.com/wp-content/ uploads / 2018/12 / regulation-696×455 .png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/regulation-643×420.png 643w, https://news.bitcoin.com/ wp-content / uploads / 2018/12 /regulation.png 871w "sizes =" (maximum width: 300px) 100vw, 300px”/>It is expected that the association will cooperate with JFSA to instruct and supervise its members to "manage their activities appropriately". It is also planned to work with them "to improve the security of related systems through security surveys and research" and to disseminate "information externally" to increase the awareness of exchange users, "the agency explained.

Furthermore, the association is expected to "define in detail the portfolio management processes from the point of view of system security and cross-sectoral rules in areas that are not covered by the laws / regulations, such as margin negotiation, for user protection, "noted Japan's financial regulatory authority, elaborating:

We expect that through self-regulation we will provide clearer and more detailed rules on provisions that are not specified by existing laws / regulations, as well as self-discipline in areas that are not covered by laws and regulations.

Adhering to self-regulation rules

<img class = "size-medium wp-image-266299 alignright” title=”Japan unveils the self-regulation expectations of the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/crypto-japan-300×191.png” alt=”Japan reveals expectations for self-regulation of the cryptocurrency industry "width =" 300 "height =" 191 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/ 12 / crypto-japan-300×191.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/crypto-japan-768×488.png 768w, https://news.bitcoin.com/ wp-content / uploads / 2018/12 /crypto-japan-696×443.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/crypto-japan-660×420.png 660w, https: //news.bitcoin.com/wp -content / uploads / 2018/12 / crypto-japan.png 879w "sizes =" (maximum width: 300px) 100vw, 300px”/>All 16 cryptocurrency trade recorded in Japan are members of Jvcea. Initially, only registered exchanges could join the association. However, after having obtained the SRO status, the association has opened the registration to other cryptocurrency operators. According to local media, authorized dealers, which are the companies that have been authorized to operate while their applications have been examined by JFSA, can also join the association.

<img class = "size-medium wp-image-266304 alignright” title=”Japan unveils the self-regulation expectations of the cryptocurrency industry” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-1-300×300.png” alt=”Japan reveals expectations for self-regulation of the cryptocurrency industry "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/ 12 / self-reg-1-300×300 .png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-1-150×150.png 150w, https: // news. bitcoin.com/wp-content/uploads /2018/12/self-reg-1-768×768.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-1 -1024×1024.png 1024w, https: / /news.bitcoin.com/wp-content/uploads/2018/12/self-reg-1-696×696.png 696w, https://news.bitcoin.com/wp-content / uploads / 2018/12 / self-reg-1-1392×1392.png 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/self-reg-1-1068×1068.png 1068w, https : //news.bitcoin.com/ wp-content / uploads / 2018/12 / self-reg-1-420×420.png 420w, https://news.bitcoin.com/wp-content/uploads/2018/12/ self-reg-1.png 1600w "sizes =" (maximum width: 300px) 100vw, 300px”/>The JFSA has confirmed to news.Bitcoin.com that "It is not a legal requirement for providers of virtual currency exchange services to be a member" of a self-regulating organization. "However, from the point of view of user protection, the JFSA monitors whether virtual exchange service providers conduct their businesses appropriately, taking into account self-regulation rules." In other words, cryptographic exchanges are expected to confirm self-regulation standards even if they are not members of Jvcea.

The agency revealed that it "works closely with the association by exchanging views on various issues on a regular basis and sharing information on members, unregistered service providers and user complaints", emphasizing:

In cooperation with Jvcea, JFSA has monitored virtual currency exchange service providers regarding their self-regulation compliance as well as laws and regulations.

Regarding the fact that JFSA will approve another self-regulation organization, the agency noted that "There is no limit to the number of SROs under the laws / regulations". The regulator added: "In the event that another SRO submits an application for approval, the JFSA will examine it from the point of view of the candidate's effectiveness in the performance of self-regulation functions."

What do you think of the Japanese approach to self-regulation for the crypto industry? Let us know in the comments section below.


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