After reviewing and strengthening the law guiding cryptocurrency to checkmate cyber-attacks, following the notorious Coincheck, a group of Japan-based cryptocurrency exchanges is looking to restore the market confidence by implementing self-imposed regulatory policies.
In recent times, Japanese exchanges have been on the wrong end of several devastating cyber-attacks which has resulted in a slight decline in trust for the industry. This is why sixteen exchanges operating in the country have come together to register with the with Japan’s Financial Services Agency (FSA) to launch a new self-regulatory organization called the Japanese Cryptocurrency Exchange Association.
According to the Japanese news outlet Asahi Shimbun, the president, and CEO of Money Partners, a publicly traded foreign exchange firm Taizen Okuyama disclosed on his company’s website that he will assume the leadership of the new organization.
The new chairman Mr. Takezu Okuyama disclosed at a press conference that, “I will make sure that security measures and internal control are in place, I will promote the arrangement of transaction rules and advertisements, promptly arrange the information to disclose,” he also disclosed that the organization aims to remove customers fears concerning the industry and to also restore confidence on the market.
All cryptocurrency exchanges currently operating in Japan is regulated by the Japanese Financial and Services Agency (FSA) and are to comply with regulatory conditions including proper identification of account holders and report transaction details. This new law came into effect in April, since then the Japanese government licenses to 16 operators in batches.
The sixteen partners in the new cryptocurrency organization 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 , Tech BURO
By coordinating its efforts with all the licensed exchanges, the organization hopes to develop wide-range of solutions regarding customers’ protection and internal controls. The organization will also impose penalties on defaulting member’ company who undermines the integrity of the industry.
Despite the tumultuous years, a conducted by the Japanese Financial Service Authority (FSA) indicates that more than 3.5 million people are currently trading digital currencies in the country. The significance of this survey shows that interest in cryptocurrency in Japan has been on a steady rise for the past few years. According to the study which was carried out to examine the state of the Japanese cryptocurrency industry and involved 17 different exchanges, Japan is now officially the world’s largest Bitcoin trading market.