Crypto Exchange Body In Japan Adds Five More Exchanges

News, Regulation | January 7, 2019 By:

The Japanese Virtual Currency Exchange Association (JVCEA), a self-regulatory industry body, has added five more crypto exchanges as Type II members.

The JVCEA was formed last year by 16 regulated crypto exchanges in Japan. Initially, only registered exchanges could join the self-regulatory body. However, after the association was granted self-regulatory organization (SRO) status by Japan’s Financial Services Agency (FSA) in October 2018, the JVCEA opened up membership to other local crypto exchanges.

In its latest announcement, the association said that the new Type II members are Coincheck, Everyone’s Bitcoin, Lastroots Inc., LVC Corporation and Coinage Corporation. According to the JVCEA, Type II members are crypto exchanges that are in the process of applying for virtual currency trader registrations.

“We aim to ensure the proper implementation of the virtual currency exchange industry and to contribute to the sound development thereof and the protection of the interests of users of the virtual currency exchange industry,” the JVCEA said.

Last month, the FSA said that it believes the SRO can take actions flexibly to keep up with the fast-changing environment surrounding cryptocurrencies.

“We think it necessary [for us] to work with the JVCEA closely so that the association can successfully perform self-regulatory functions through the establishment and application of self-regulatory rules and monitoring of their members,” the FSA said.

The JVCEA proposed measures include prohibiting exchanges from supporting privacy-centric coins, such as Monero and Zcash, and enforcing a strict ban on insider trading. It also proposed a limit on the maximum leverage offered by exchanges for margin trading.