Japanese cryptographic exchanges may soon have an official body of self-regulation. The Japanese Association for the Exchange of Virtual Currencies has asked the country's regulatory authority to become the authority for self-regulation, with the power to enforce the rules on its members of the crypto -exchange.
Read also: Yahoo! Japan confirms entry into cryptographic space
Registering with FSA
The Japan Virtual Currency Exchange Association (Jvcea) announced on Friday that it had requested certification with the country's main financial authority, the Financial Services Agency (FSA).  The Japanese Association asks the authority to apply self-regulation to the crypto trade "width =" 300 "height =" 213 "srcset =" https://news.bitcoin.com/wp -content / uploads / 2018/08 / business-japan-300×213.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/08/business-japan-100×70.jpg 100w, https: / /news.bitcoin.com/wp-content/uploads/2018/08/business-japan.jpg 543w "sizes =" (max-width: 300px) 100vw, 300px "/> Currently there are 16 cryptographic power plants approved by the government and fully authorized in Japan, all of them are members of Jvcea.
The association explained that it is trying to become a "business association for the management of certified funds", which will act as a self-regulatory body for the exchange of cryptography: Its main objectives include providing "indications and recommendations to members to comply with regulations, laws and rules of self-regulation", reads the announcement of Jvcea. The association hopes to contribute "to the solid development of the industry of virtual currency exchange and the protection of user interests."
According to To-o Nippo Press:
The financial services agency will carefully examine the business of the association and carefully investigate whether proper group management can be expected. It will take 1 to 2 months for the review.
The Jvcea was established in response to the Coincheck hack in January where 58 billion yen (~ US $ 521 million) value of the cryptocurrency NEM has been stolen. It aims to restore public confidence in the crypto industry.
Japan also has two other cryptic associations that precede Jvcea: the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA). Most cryptographic exchanges in the country are members of one or both of these organizations.
Self-regulatory rules presented
self-regulation which includes a series of restrictions on how cryptographic exchanges work . In June, local media reported that private currency lists will be limited and a ban on insider trading will be imposed.
Other restrictions include a 4-fold margin limit, maximum trading limits for all customers and trade restrictions for minors and the elderly
"We also presented voluntary rules on margin trading and insider trading [to the FSA]"Jiji Press cited the association:
If [the Jvcea] was approved as a self-regulating organization, it will be possible to impose the provision and investigation of the exchanges of members, the ejection of membership … compulsory.
According to the publication, the FSA "intends to entrust the organization with the flexibility necessary to rapidly develop technologies and combine technological innovation and customer protection".
The association wrote: "We will work closely with traders of registered virtual currencies and all those who support us while they are fully working to restore users, rust in the managers and markets of national virtual currencies. "
What do you think of the efforts of the association? Do you think Japan should have a self-regulating authority? Let us know in the comments section below.
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