If you read and follow our website, you probably remember about the famous $530 million hack of Coincheck that happened a few months ago in Japan. Well, according to reports, this theft made a total of 16 registered Japanese crypto exchanges to establish a self-regulatory body in April this year.
The two major cryptocurrency trade outfits are coming together with plans to form a self-regulatory body that will work with the Financial Services Agency (FSA) which is the country’s principal financial regulator.
The body will also establish some clear guidelines and investor safety norms for exchanges, according to Nikkei. Currently untitled, this body will probably be named by the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA). After agreeing the terms last week, the two groups decided to jointly develop the body and set standards for the wider industry.
The group of exchanges won’t have an easy job. Each of them will contribute to the body by focusing on issues such as avoiding system downtimes, improving the protection of crypto assets belonging to customers and curbing the insider trading speculations. For chairman, the body will see Taizen Okuyama which is a president of a forex trading firm known as Money Partners Group.
One of the main powers of this body, according to experts, will be to enforce compliance and determine which cryptocurrencies are specifically approved to list for trading. Additionally, the body will have the power to pre-approve all the new ICOs in Japan.
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