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Japanese Virtual Currency Exchange Association Will Release Voluntary Rules

Kristina Frunze | Jun. 19, 2018
Japanese Virtual Currency Exchange Association Will Release Voluntary Rules

Japanese Virtual Currency Exchange Association is expected to release the voluntary regulation framework. Reportedly, the rules include a ban on the trading of anonymity-oriented cryptocurrencies. 

19 June, AtoZ Markets – The Virtual Currency Exchange Association of Japan (JVCEA) is expected to release new voluntary rules next week. 

The official announcement of the regulatory framework is set for June 27th. The rules will reportedly include a ban on insider trading and penalties for cryptocurrency exchange employees in case they are involved in “inappropriate” trading linked to their privileged knowledge. 

Japanese Virtual Currency Exchange Association Will Release Voluntary Rules

In order to comply with anti-money laundering (AML) regulations, the voluntary regulation proposal is also including a ban on the trading of anonymity-oriented cryptocurrencies. These cryptocurrencies include Monero and Zcash. 

The JVCEA has been created at the end of April following the $530 million Coincheck NEM hack. It is a self-regulatory body that comprises the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA).

The organization is made up of 16 Japanese crypto exchanges. It is responsible for checking the security of crypto exchanges in Japan. It also is carrying out some other tasks, such as the assessment of tokens issued via Initial Coin Offerings (ICOs). 

KBA Self Regulatory Framework

Earlier this April, South Korea’s self-regulatory cryptocurrency association has released its set of rules. They included the standards for management of clients’ coins separately from their own supply. The organization has also set out guidelines, which require cryptocurrency exchanges to hold a minimum equity of 2 billion won ($1.8 mln) and to release regular audit and finance reports.

According to the local media reports, the South Korean Blockchain Association (KBA) cryptocurrency framework has been announced by the executive of the organization, Jeon Ha-jin during a press conference at the Korea Federation of Small and Medium Business (SME) in Seoul.

The new KBA self-regulatory framework consists of the measures that are focusing on protection of customers. The rules strive to optimize the transparency of operations at cryptocurrency exchanges. Moreover, they aim to prevent money laundering, terrorism financing, insider trading, and other illegal activities.

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