A new association has been registered in Japan consisting of 16 government-approved cryptocurrency exchanges. The group will focus on establishing self-regulatory rules and will have the authority to investigate and sanction members that do not comply with self-regulation.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
New Japanese Crypto Association
A new cryptocurrency organization has been registered with the Japanese Financial Services Agency (FSA), consisting of 16 crypto exchanges that have been approved by the agency, according to local media.
The Japan Virtual Currency Exchange Association recently held a general meeting, during which a director was chosen, Jiji Press reported.
The group plans to “elect Taizen Okuyama, President of Money Partners as Chairman” at the next Board of Directors meeting which will be held on April 23. The association will be formally launched on that date.
The news outlet quoted the new group explaining that they aim to establish rules for their member exchanges, and as an organization, will have the “authority to investigate and banish member companies.”
The Japan Virtual Currency Exchange Association’s founding members are the 16 fully licensed exchanges operating in Japan. They are Bitflyer, Money Partners, Bitbank, Bitpoint, Quoine, SBI Virtual Currencies, Fisco Virtual Currency, Btcbox, Zaif, GMO Coin, Bittrade, Tokyo Bitcoin Exchange (DMM Bitcoin), Bitarg Exchange Tokyo, FTT Corporation, Xtheta Corporation, and Bitocean.
Japan already has two existing associations in the crypto space: the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA). The former is headed by Bitflyer CEO Yuzo Kano and the latter by the president of Money Partners Group.
The new association will be a member of both the JBA and the JCBA, both of which will continue to operate, according to the news outlet. Some crypto exchanges are members of both associations, such as GMO Coin and Coincheck.
While all members of the new association are FSA-approved exchanges, members of the JBA and the JCBA also include “deemed dealers,” which are exchanges the agency allows to operate while their registrations are under review. Coincheck, which was hacked in January, falls into this category.
The FSA is currently strengthening its rules for deemed dealers. Masashi Nakajima, Professor at Reitaku University, who participates in the agency’s research group, pointed out that most users did not know that Coincheck was unlicensed, Sankeibiz conveyed. “I ask for a mechanism that is easy to recognize at a glance” to indicate that an exchange is still unlicensed such as a posting on the exchange’s website, he was quoted.
Do you think this new association will help the crypto ecosystem in Japan? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.