Japan’s Cryptocurrency Exchanges Launch Self-Regulatory Body
Japan’s sixteen licensed cryptocurrency exchanges have gathered together and agreed to form a self-regulatory body that will create standards for all its members.
Local news media outlet Asahi Shimbun reported that all sixteen licensed exchange operators have finally launched what will become known as the Japanese Cryptocurrency Exchange Association (JCEA), an organization that provides voluntary guidance and standards to all members. The inaugural JCEA meeting was held on April 23.
One of the most important factors leading up to the formation of JCEA was January’s $530 million heist from Japanese exchange Coincheck. According to Asahi Shimbun, the Coincheck theft revealed vulnerabilities in other exchanges.
The JCEA will have the goal to develop and implement best industry practices to tighten security and make sure that a heist on the level of Coincheck is not repeated. However, the self-regulatory body is also tasked with working on creating a “healthy trading environment.”
The sixteen exchanges comprising the JCEA include Money Partners, QUOINE, Bit Flyer, Bit Bank, SBI Virtual Currency, GMO Coin, Bit Trade, BTC Box, BitPoint Japan, DMM Bitcoin, Bit Argo Exchange Tokyo, Bitgate, BITOCEAN, Fiscalo Currency Exchange, Xtheta, and Tech BURO. JCEA will also advise the twelve or so Japanese exchanges not currently licensed under the legal framework.
Takezu Okuyama, President and CEO of Money Partners and JCEA Chairman, said that the organization is “working hard to develop security measures and internal control,” promote “rules for transactions and advertisements” and updating information disclosure policies in order to “eliminate customers' concerns and work to restore confidence.”
JCEA will create rules intended to increase customer protection and internal control, whilst also seeking “legal support” from the government to help enforce those rules. Enforcement mechanisms may include imposing “penalties and other dispositions” on traders and exchanges that have “damaged the trust of the industry.”