The Japanese main regulator has now officially granted its domestic cryptocurrency industry self-regulatory status. This gives a specially established industry body the right to regulate and monitor the local crypto exchanges.
In general, Japan's economy is conservative. Nonetheless, cryptocurrencies play a major role there. This probably stems from the general openness of the Japanese towards technology. The country also wants to maintain and extend its lead over its big neighbor China. Last but not least, the name or the pseudonym of the inventor of Bitcoin speaks for it. “Satoshi Nakamoto” is a Japanese common name and might be compared to “Hansi Müller”.
However, the industry has also had a turbulent history in Japan and has suffered significant setbacks. The insolvency of the crypto exchange Mt.Gox played a major role. This year, two more hacking attacks on Japanese crypto exchanges shook the industry. For example, in January, Tokyo's Coincheck crypto exchange was hacked, stealing $ 530 million of cryptocurrencies. In September, it met the licensed crypto exchange Zaif. The hacker (s) stole Bitcoin, Bitcoin Cash and Monacoin worth nearly $ 60 million. The industry saw itself therefore in the urgent duty to do something. One probably did not want to “pour out the baby with the bathwater” and try to avoid a state full regulation.
In August, the industry formally filed a petition for recognition of a self-regulatory body, the JVCEA, with the Japanese main regulator FSA. This board is composed of representatives of all 16 licensed Japanese crypto exchanges. The application was followed by an in-depth, two-month FSA audit.
Now the FSA has officially announced on its website that it has issued the requested recognition. The self-regulatory rules will take effect from this time. The JVCEA wrote:
“Now that the recognition is over, we'll take further steps to create an industry where you, as a cryptocurrency user, can trust all member crypto exchanges.”
Recognition allows the panel to establish guidelines for Japanese crypto exchanges. This includes strict measures against insider trading and money laundering. Also included is the authority to introduce security standards to protect customers' deposits.
According to reports, the newly-recognized oversight body has already drafted a 100-page draft. This draft describes the self-regulation of Japanese crypto exchanges. Part of these regulations should be a complete ban on insider trading. Furthermore, it should be prohibited to licensed exchanges to offer privacy-oriented coins, such as Monero and Dash. This is probably to reassure the Japanese authorities, who have long been suspicious of these cryptocurrencies. Furthermore, the committee is said to have proposed a 4-to-1 limit for margin trading with cryptocurrencies. This limits the amount of money that investors can borrow in addition to their deposits. As a result, the profit opportunities for the traders, but also their risk, diminished.
Sources: Japandigest, Medium, Financial Services Agency (in Japanese), Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/japan-approved-selbstregulierung-sebit-bitcoin-and-krypto-boersen/
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