Japan has granted the cryptocurrency industry self-regulatory status

24 Oct, 2018
by Richard Allen
News
Japan has granted the cryptocurrency industry self-regulatory status

Today, Japan’s Financial Services Agency (FSA) granted the cryptocurrency industry self-regulating states, allowing the Japan Virtual Currency Exchange Association (JVCEA) to police exchanges, Reuters reports.

The FSA approval means that the JVCEA is now responsible to set rules that safeguard customer asses, prevent money laundering, and give operational guidelines. Additionally, the association will also have to enforce compliance.

“It’s a very fast-moving industry. It’s better for experts to make rules in a timely manner than bureaucrats do,” a senior FSA official said.

As the country looks to balance innovation with customer protection, Japan became the first country to regulate cryptocurrency exchanges last year, requiring all exchanges to register with the FSA.

As a result of a $60 million hack from cryptocurrency Tech Bureau Corp in September, the JVCEA’s rules are stricter than what the law requires, but are there to help the industry regain the trust of the public.

Moreover, Yuri Suzuki, senior partner at law firm Atsumi & Sakai said, “the self-regulatory body’s workload is likely to be heavy and there is an issue of whether it can secure enough staff with expertise in crypto exchange business.”

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