Self-Regulation in the Cryptocurrency Industry has Been Approved in Japan

Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 13, 2018. REUTERS/Dado Ruvic/Illustration

The Financial Services Agency (FSA), Japan’s main regulating body over the financial sector, has approved the Japan Virtual Currency Exchange Association (JVCEA), an organization of the 16 licensed cryptocurrency exchanges in the country. The approval came on October 24, 2018, which will allow the crypto industry to govern the local exchanges.

The JVCEA has be given the status of a ‘certified fund settlement business association.’ This will allow the organization to create the infrastructure and rulesets over the local exchanges to minimize the illicit dealing inherent in a financial market, such as market manipulation, money laundering, terrorist financing and insider trading. They will also set the guidelines to secure the safeguarding of client assets.

The JVCEA commented on their new status as a certified fund settlement business association, saying that they are up to the task of self-regulation:

“With the acquisition of the accreditation, we will continue to make further efforts to create an industry that you can trust from everyone who uses virtual currency with members [exchanges].”

This approval comes after major hacks have debilitated certain domestic crypto exchanges.