Wednesday, 24th October 2018 will go down as a great day in the history of the Cryptocurrency market. On this particular day, the Financial Services Agency of Japan granted the Crypto market an authority to self-regulate. This implies that the Japan Virtual Currency Exchange Association can now establish rules for consumer protection, operational requirements, and employee ethics.
A Way Of Restoring Back The Market Trust
In a statement released on its official website, the Cryptocurrency industry association of Japan, JVCEA stated out that the accreditation acquisition will assist in making additional efforts in creating a market that all can trust. After two main Cryptocurrency heists at the beginning of this year, exchanges in this Pacific Island country are so desperate to get back their public trust. The industry is moving very fast, according to an unnamed senior official at a Financial Services Agency. Therefore, it would be better for experts to come up with rules in a timely fashion, more than bureaucrats.
Last year, Japan broke the record by becoming the first country to regulate the trading platforms for Cryptocurrencies. This was part of its nationwide effort of encouraging technological innovation while protecting the assets of the consumer. The exchanges were required to register with Japan’s Financial Securities Association, and so far, 16 have complied with that directive. But a series of attacks by various hackers have struck at the very heart of the Cryptocurrency market in this country.
New Strict Rules
The rules under the self-regulation are much tougher as compared to the ones that were there previously. This is according to Yuri Suzuki, who is a senior partner at Atsumi & Sakai Law Firm. Although the rules are much tougher, they will greatly help in restoring the confidence in the market. While that is ongoing, the workload of the self-regulatory workload is expected to be quite heavy. There is also an issue whether it would be able to secure sufficient staff that has expertise in the business of Crypto exchange. In its efforts to make the nation’s Crypto market more strong, the FSA opted to publish a set of guidelines that would apply to those who want to manage any crypto exchange.
High Number Of Exchanges In Japan
This market is one of the most competitive nearly in the entire world, and in this Pacific Island nation, more than 160 exchanges have expressed their interests of joining. The Financial Securities Association of Japan had no option other than publishing rules that could now be used. Established media houses have also not been left out in this whole new debate. One of them that has been so vocal, especially on the decision of JVCEA to propose a four-times limit on Crypto margin trading. The media house suggests that JVCEA is likely to create in new rules that will set a ceiling on the amount of digital coins that can be managed online in various hot wallets. From the look of things, the ceiling might be capped at 20% of the customer deposits.