The 16 registered cryptocurrency exchange services in Japan have come together to form the Japan Cryptocurrency Exchange Association (JCEA). This is according to a report by Asahi Shimbun, a local news outlet in Japan. The JCEA will be responsible for the self-regulation of Japanese cryptocurrency exchange platforms.
Taizen Okuyama is the chairman of the JCEA. He is the CEO of Money Partners, a forex firm which recently entered into the cryptocurrency exchange market in Japan. Members of the JCEA include bitFlyer, BitPoint, and Xtheta. Others are Tech Buro, QUOINE, and SBI Virtual. The JCEA is made up of two cryptocurrency and blockchain-focused associations. These are the Japan Cryptocurrency Business Association (JCBA) and the Japan Blockchain Association (JBA). Bitcoinist had reported in February 2018 that a merger of the JCBA and the JBA was imminent.
Sanitizing the Industry via Crypto Self-Regulation
The first order of business for the JCEA will be to sanitize the cryptocurrency exchange market in the country. Okuyama, speaking at the JCEA official launch, said that the Association will make security upgrades of cryptocurrency exchange platforms a priority. He also said that the JCEA will enact a regulatory framework that will oversee the activities of the members.
The JCEA will create appropriate checks and balances in the system.
Okuyama also said that:
[He] will make sure that security measures and internal control are in place.
The Association will ensure strict compliance with its rules and regulations. There will be stiff penalties for platforms that flout the rules and regulations of the Association. The JCEA chairman also said that the body will offer assistance to unregistered cryptocurrency exchange platforms in the country.
Restoring Consumer Confidence
The move to self-regulate comes as the FSA has increased its cryptocurrency oversight activities. The January 2018 Coincheck hack that led to the loss of more than $500 million worth of NEM has cast many doubts on the security infrastructure of cryptocurrency exchange platforms. The FSA has come down hard on some platforms in recent months, even shutting down a couple of them.
The Okuyama-led JCEA has said that it is determined to restore consumer confidence.
The JCEA chairman is quoted as saying that:
We want to eliminate customers’ concerns and work to restore public confidence in order to develop a healthy market.
There have also been calls for self-regulation in the cryptocurrency market of other countries. Reports indicate that cryptocurrency stakeholders in South Korea are close to launching a cryptocurrency self-regulatory body. Top financial regulatory experts in the U.S. have also urged cryptocurrency firms to regulate themselves.
What are your views on cryptocurrency self-regulation? Do you think that it will positively affect the market? Share your views in the comments below.
Image courtesy of Money Partners Group, GoodFreePhotos, and Bitcoinist archives.