Japan’s JVCEA in a major announcement on Aug 4, revealed that it has applied for certification with the Financial Services Agency (FSA). Presently, there are 16 government-approved, fully licensed crypto exchanges in Japan. All these exchanges are members of the Japan Virtual Currency Exchange Association (JVCEA).
In its announcement, the association said that it is seeking to become a certified fund settlement business association. This will help the association to serve as a self-regulatory body for crypto exchanges. JVCEA’s key objectives include offering recommendations and guidance to its members to comply with regulations, laws, and self-regulation rules.
The association intends to contribute towards the sound development of the cryptocurrency industry and to safeguard the interests of its users. In response to the Coincheck hack in January where 58 billion Yen worth of cryptocurrency NEM was stolen, the JVCEA was established. It aimed to restore the lost faith in the crypto industry in Japan.
Two other Japanese crypto associations which predate the JVCEA include the Japan Cryptocurrency Business Association (JCBA) and the Japan Blockchain Association (JBA). The majority of crypto exchanges in Japan are members of either one or both of these organizations, as reported in the Bitcoin news.
JVCEA Submits Self-Regulatory Rules
As per the latest reports received, the association has drafted self-regulation rules. These include a number of restrictions on how crypto exchanges need to operate. The local media reported in June that a ban on insider trading will be imposed and privacy coin listings will be restricted.
Some of its other restrictions entail trading caps for all customers, a margin limit of 4 times leverage, and trading restrictions for the elderly and minors. The association is looking forward to work closely with registered virtual currency exchange traders and all those traders who support them. The association is working towards restoring users’ trust in domestic virtual currency handlers and markets.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]