In an effort to bolster trust in the crypto community, approved cryptocurrencies exchanges in Japan released a statement indicating an agreement to form a self-regulatory body. This announcement made on Thursday, March 1, comes in the wake of the Coincheck heist, the biggest single cryptocurrency theft in Japan.
Reuters reports that the part of the statement read:
[perfectpullquote align=”left” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Japan’s 16 government-registered cryptocurrency exchanges will set up a self-regulatory body to bolster trust in an industry rocked by a $530 million digital money heist in January.[/perfectpullquote]
The 16 approved exchanges will be joined in the country’s first regulatory body by another 16 exchanges pending approval as well as over 100 other exchanges that plan to register later.
The new regulatory group would be instituted later this year. The statement did not include the name of the new agency or the details of its registration with Japanese authorities.
Cryptocurrency exchanges are currently regulated by the Japanese Financial and Services Agency (FSA) and are required to comply with regulatory conditions including proper identification of account holders and report transaction details. Since April when the law came into effect, the government had issued licenses to 16 operators in batches.
Coincheck is part of the next batch 16 exchanges whose approvals are pending but are allowed to conduct business while awaiting approval. The Coincheck hack which saw users lose over $500 million worth of NEM coins has led to widespread debate about Japan’s decision to allow and regulate cryptocurrencies in contrast to tougher stances in China and South Korea. If anything, this extra regulatory cover would help restore investor confidence in Japan
Last month, there were rumors that the two largest crypto communities would merge to form a self-regulatory body.