Crypto Exchanges In Japan Form Self-Regulatory Body To Restore Public Trust

Announcements, News, Regulation | April 25, 2018 By:

A group of licensed cryptocurrency exchanges in Japan has formally launched a new self-regulatory body in a bid to restore market confidence following the Coincheck hack in January.

Dubbed the Japanese Cryptocurrency Exchange Association (JCEA), the new self-regulatory body was formed by 16 crypto exchanges that are currently registered with Japan’s Financial Services Agency (FSA). Participating exchanges include Money Partners, Quoine, Bitflyer, Bitbank, SBI Virtual Currencies, GMO Coin, Bittrade, Btcbox, Bitpoint Japan, DMM Bitcoin, Bitarg Exchange Tokyo, FTT Corporation, Bitocean, Fisco Virtual Currency, Tech Bureau, and Xtheta. Taizen Okuyama, president and CEO of Money Partners, was appointed the chief of the new group.

“I will make sure that security measures and internal control are in place,” Okuyama said. “We want to eliminate customers’ concerns and work to restore public confidence in order to develop a healthy market.”

The self-regulatory body is expected to release trading and disclosure rules this summer. It will focus on a comprehensive set of rules aimed at customer protection and internal controls. It will also seek to impose penalties on those who engage in activities that damage the trust of the industry.

Okuyama said that the JCEA will also provide guidance to cryptocurrency exchanges that seek registration but continue to operate without a license from the FSA.

“I would like to create a situation where I can give advice to (unregistered exchanges),” Okuyama said. “The development of the industry as a whole is important.”