Self-Regulation at Japanese Cryptocurrency Exchanges
April 23rd marks the launch of the Nihon Kasotsuka Kokangyo Kyokai or the Japan Cryptocurrency Exchange Association in Japan – a self-regulating organization backed by legal support, as first reported by The Asahi Shimbun. The association has launched with 16 Financial Services Agency- registered members including popular cryptocurrency market names such as, Money Partners, QUOINE, bitFlyer, Bitbank, SBI Virtual Currency, GMO Coin, Bit-Trade, BtcBox, BITPoint Japan, DMM Bitcoin, Bit-Argo Exchange Tokyo, BitGate, BitOcean, Fiscalo Currency Exchange, Xtheta, and Tech Buro.
To Regain Public Trust
The formation of the association has been necessitated by the sheer volume of cryptocurrency trading (estimated at about 69.1 trillion yen in 2017) and hack instances such as the $533 million NEM hack at the Coincheck cryptocurrency exchange. The association’s purpose is to impose self-regulation and stricter security to regain public trust and has laid down rules for consumer protection and internal control at virtual currency exchanges. It will seek compliance from each of the association member companies and penalties will be imposed on those who damage the trust of the industry.
To Develop Healthy Markets
According to Taizen Okuyama, President and Representative Director Money Partners Group, [unofficial translation] “We are working hard to develop security measures and internal control; we will promptly promote the rules of transactions and advertisements and the information we disclose. We want to eliminate customers’ concerns and work to restore confidence in order to develop healthy markets.”
Meanwhile, Yuzo Kano, CEO BitFlyer has been talking about the responsiveness that his firm would be taking on as a financial company and that they aim to introduce more stringent security measures at their exchange.
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