Japan’s cryptocurrency market is set to unveil its self-regulatory body in April. The new organization, which is the brainchild of sixteen registered crypto market operators, seeks to work hand in hand with the Financial Services Agency of Japan to come up with safety standards that will safeguard the interests of investors.
Body to Determine Rules for ICOs and Other Digital Products
Though yet to be named, this body is also expected to set out rules and regulations for Initial Coin Offerings. The ICO is especially being targeted as a result of the controversy it has raised in the past, regarding how virtual tokens are sold to investors.
According to Taizen Okuyama, the would-be Chairman, the goal of the whole project is to mould the whole cryptocurrency sector to work within a self-regulatory framework. Mr. Okuyama is Money Partners Group’s current President and doubles up as the chair of the Japan Cryptocurrency Business Association.
Never-before-seen Strategy for Japan’s Crypto Market
It should be noted that as much as JCBA has always co-existed with Japan Blockchain Association, they have never gone to the extent of creating rules and regulations that would govern the industry as a whole.
According to Yazo Kano, the head of JBA and CEO at bitFlyer, there is the need for the industry to structure security standards. He is expected to serve as the new group’s chairman.
Notably, investors are now wary of their security more than ever, especially after what happened in January, as this incident has been largely blamed on negligence on the part of those concerned with securing the system.
Why it Should Work as an Independent Regulator
The new body will be seeking to get approval from the government to operate as an independent regulator. This will enable them to make a list of digital coins that are permitted to be handled by exchange operators. This will be the perfect strategy to identify and exclude the more than 1,500 cryptocurrencies that have had their reputation tainted due to money laundering and other forms of fraud.
When the body opens its doors, it is expected to welcome both the registered players and those still running exchanges on a provisional level, as they await the approval of FSA. This move by the Japanese industry replicates the British trade body CryptoUK, which was formed last month.
By forming this self regulatory body, will Japan’s cryptocurrency market redeem itself? How will this affect the cryptocurrency industry in the country? Let us know your thoughts in the comments below.