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A group of Japanese cryptocurrency exchanges has formally submitted a detailed proposal to establish a self-regulatory organization to the Nationwide Financial Services Agency (FSA).
The Japan Currency Currency Exchange Association (JVCEA), consisting of 16 Exchanges in March and registered with the FSA in April, have applied to become "an association of companies for the management of certified funds", has reported the Asia Times on Monday. This would allow the JVCEA to impose self-regulation rules on the cryptocurrency trade market as part of an effort to create stricter industry standards.
A draft work of the proposed rules in the nearly 100-page document would require cryptocurrency exchanges to regularly carry out audits, and to forbid some anonymous cryptocurrencies to be exchanged as monero or dash, last month Nikkei Asia reported.
Even more recently, the JVCEA said that it also wanted to limit the amount of loans when it came to margin trading, ie trading with borrowed money, must be a maximum of four times the original deposit of the Investor, as previously reported by CoinDesk.
These are suggestions suggested by the association to prevent the repetition of troubling incidents such as the Coincheck hack in which it is estimated that 533 million dollars have been withdrawn from the digital portfolios of the exchange.
It also derives from the tendencies of the Japanese financial services agency to suppress the cryptocurrency sector by examining more closely the activities of the exchange of cryptocurrencies under license, issuing "business improvement orders" aimed at improving the systems internal control and user protection.
Image of documents via Shutterstock
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