Japanese cryptocurrency exchanges unite in a self-regulating association

Japan’s main financial index, the FSA (Financial Services Agency), officially endorsed the Japan Virtual Currency Association (Japan Association of Cryptocurrency Exchanges (JVCEA) as a self-regulating...

Japan’s main financial index, the FSA (Financial Services Agency), officially endorsed the Japan Virtual Currency Association (Japan Association of Cryptocurrency Exchanges (JVCEA) as a self-regulating industry body.

According to the FSA, JVCEA will become a «certified financial billing business association.» This status allows the organization to set rules for national crypto exchanges and take action against any violations (such as insider trading, money laundering).

JVCEA has already prepared a guide for companies operating in the crypto world. This document prohibits insider trading, limits the use of anonymous cryptocurrencies, and reduces the size of the proper leverage to x4 for margin trading.

The association includes 16 licensed crypto trading platforms. The idea of ​​creating an association arose as a result of a hacker attack on the Coincheck exchange earlier this year, which resulted in $ 530 million stolen. Back in August, JVCEA sent a request to FSA.

Earlier, Zaif crypto exchange, one of 16 licensed platforms, was hacked and $ 60 million stolen. After that, the latter was forced to unite with another company because it simply did not have the reserve funds to pay the affected users their money back.