According to a press release, JVCEA (Japan’s Virtual Currency Exchange Association) will reportedly be setting out new voluntary regulations next week. The new optional rules will include several regulations and alterations.
Checkmating Insider Trading in the Cryptocurrency Market
According to the official announcement by Japan’s Self-Regulatory Virtual Currency Exchange Association, the new regulatory guidelines, which is set to be released on June 27, is designed to make employers who trade illegally pay for their crimes. There will reportedly be a ban for insider trading, and a penalty for digital currency exchange employees who choose to engage in “inappropriate” trading because they have access to firsthand knowledge regarding the nature of the market.
In a bid to conform to AML (anti-money laundering) regulations, the new voluntary regulation proposal made by Japan’s Self-Regulatory Virtual Currency Exchange will also ban the trading or exchange of anonymity-oriented digital currencies, including Monero and Zcash, on virtual token exchanges.
Created on April end this year, following the Japanese digital asset exchange, Coincheck’s 530 USD mln NEM hack, the JVCEA was set up to cub illegal trade practices. It is a self-regulatory commission that combined two virtual token entities already in existence including the JCBA (Japan Cryptocurrency Business Association) and the JBA (Japan Blockchain Association). The regulatory body, which consists of the entire 16 licensed crypto exchanges in Japan, says its operations are inspecting the security of digital token exchanges in the country. The regulatory organization is also capable of delivering more specific tasks such as assessing the tokens that are issued during Initial Coin Offerings (ICO).
You’ll recall that in April, the Self-Regulatory Cryptocurrency Association of Korea, released to the crypto ecosystem its own set of regulations, which included managing the coins owned by clients separate from their own supply, releasing regular audits and finance reports as well as holding a minimum equity of 2 billion won (1.8 million USD).