October- 24, 2018 | AtoZ Markets
Japan’s Financial Services Agency (FSA) on has given today the cryptocurrency industry self-regulatory a status, authorizing the Japan Virtual Currency Exchange Association to police and sanction exchanges for any law breaches, according to Reuters.
The FSA document allows the industry association to set rules to safeguard customer assets, confront money laundering, in addition to giving operational guidelines, besides policing compliance.
A senior FSA official –who refused to mention their name- commented on the step, saying that
“it’s a very fast-moving industry. It’s better for experts to make rules in a timely manner.”
The industry reportedly witnessed similar officially sanctioned bodies such as securities brokerages.
In its turn, the cryptocurrency industry association said in a comment that:
“We will make further efforts to build an industry that is trusted by customers.”
It is worth mentioning that Japan became the first country to regulate digital assets’ exchanges the last year, being open to technological innovation while ensuring consumer protection, stressing that the exchanges have to register with FSA.
Strict Self-Regulatory Rules
The news reported earlier that the Japanese cryptocurrency market lost 60 mln Dollar from cryptocurrency firm Tech Bureau Corp in September.
The company was smacked with two business improvement orders by FAS following the theft of $530 Million in cryptocurrencies at Tokyo based crypto exchange – Coincheck in January.
Some FSA representative said that the crypto industry now needs more regulatory approach, while not to smother its development.
The senior partner at law firm Atsumi & Sakai, Yuri Suzuki has explained that the self-governed body rules are much stricter, and she expects them to help the industry to regain public trust.
Suzuki quoted that:
“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.”
On Wednesday, October 24, 2018, FSA has published a set of guidelines for those who are applying to run crypto exchange. The agency commented that there are about 160 entities expressed their interest.
Till now there are 16 approved cryptocurrency exchanges. Also, FSA has not granted any new approval since December of the last year.
In addition to that the FSA official quoted:
“We are looking into more details than before. In that sense, the approval process has become stricter.”
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