On Wednesday the 24th of October, Japan’s Financial Services Agency granted permission to its cryptocurrency industry to self-regulate. This move means that Japan’s Virtual Currency Exchange Association which is a grouping of several registered digital currency exchanges can now set-up rules and guidelines on operational requirements for players in the space. They will also help to put in place guidelines to help protect clients, prevent money laundering and protect employees’ rights. There will also be the enforcement of compliance by the association.
The Japanese Cryptocurrency Industry Association (JVCEA) on its website states that “with the acquisition of accreditation, we will continue to make further efforts to create an industry that you trust for everyone who uses virtual currency with its members.”
Following hacks of a number of exchanges in Japan in the recent past, exchanges in the country are working hard to regain public trust. An unnamed official of the Japanese Financial Services Agency told Reuters that “it’s a very fast moving industry. It’s better for experts to make rules in a timely manner than bureaucrats.”
Last year 2017, Japan became the first country to have set regulations for cryptocurrency trading platforms. This was a move towards encouraging technological innovation in the country whiles safeguarding consumer interests at the same time.