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Tag Archives: Cryptocurrency Self-Regulation Approval

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How Self-Regulation Could be a Game Changer for Japan’s Cryptocurrency Exchanges

  By David Drake   Japan’s cryptocurrency market has experienced numerous cyber-attacks that have led to loss of billions. With this in mind, Japan has been contemplating lawful cryptocurrency aspects for a while and its Financial Services Agency (FSA) has finally granted the cryptocurrency industry self-regulatory rights. The Japan Virtual Currency Exchange Association (JVCEA), a platform that brings together 16 crypto-exchanges, will be overseeing the cryptocurrency industry. The FSA gave the alliance authority to regulate the industry, protect assets of customers and provide operating principles. The association will also give clear policies on anti-money laundering and outline appropriate compliance plans for the country’s cryptocurrency exchanges. “JVCEA sprung up as a result of multiple hacks of Japanese exchanges. We’ll see how this group interacts with the global crypto community to ensure all exchanges can secure their customer data,”  Joseph Oreste, founder of Qupon notes. Self Policies Previously, JVCEA proposed rules to ban trading ... Read More »

Key Benefits that Japan will Accrue after Regulator Approves Self-Regulation

  By David Drake   There is good news for cryptocurrency industry players in Japan. The country’s Financial Services Agency (FSA) announced that it has given its approval for the industry to regulate itself. This means the industry will now be able to provide guidelines on matters like safeguarding consumer assets and anti-money laundering policies to its 16 registered crypto exchange companies. The Japan Virtual Currency Exchange Association (JVCEA) will also have power to monitor and sanction exchanges for any violations. The approval comes after the 16 crypto exchange companies formed a united front and drafted an approval to the FSA for self-regulation. Even though the FSA will retain its oversight role on the industry, what could self regulation mean for Japan? Devolved Power The self-regulation concept contains varied opinions from stakeholders in the cryptocurrency industry. In this case, Japan’s industry will clearly be the winner because there is a ... Read More »

Japan’s FSA Hands Reins to Self-regulation Crypto Body

  By David Drake   The Japanese leg of the cryptocurrency movement has inched closer to a leading role when the Financial Services Agency (FSA) gave the green light for the industry to self-regulate. Japan was the first country to institute regulations for crypto-exchanges last year, and has since encouraged innovation in this industry. The Japan Virtual Currency Exchange Association’s (JVCEA) new status gives it the ability to not only monitor activities on the Japanese exchanges, but also to penalize exchanges for infringements. It is not yet evident what this means in the long run, or whether other countries with strong cryptocurrency environments will follow suit. The Crypto Journey Japan has maintained a strong crypto presence from the get-go. It has encouraged the use of this nascent digital asset, and has cultivated its use in various facets of the country. Since the rise of cryptocurrencies, Japan has welcomed crypto-based companies ... Read More »

How Japan’s Virtual Currency Exchange Association will better Tackle Hackings

  By David Drake   Genuine interest in digital assets has been increasing as consumers and institutional investors realize attractive investment opportunities offered by the distributed ledger technology. Despite this interest, there are concerns from potential investors that stem from risks such as hacks and fraud that have manifested themselves in the industry. Naturally, governments have stepped in to protect consumers from such vices by creating regulations which industry players are required to observe. Unfortunately,  efforts such as these have contributed to stifling crypto innovations within their jurisdiction and have led to companies shifting operations to countries such as Malta which have a more favorable operating climate. It is for this reason that industry players have come together to offer an alternative solution to governments through self-regulation. It was, therefore, good news when Japan’s Financial Services Agency (FSA) announced that it had given its approval for the cryptocurrency industry in ... Read More »

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