Japan's crypto industry drafts tight rules for private coins, market reaction is muted so far

Japan's cryptocurrency self-regulatory body has prepared a new set of rules to foster transparency and protect crypto investors, according to Nikkei Asian Review. The new rules will prohibit insider trading and ban anonymous coins that cannot be easily traced, the media outlet reports. 

The Japan Virtual Currency Exchange Association (JVCEA) is a self-regulatory body of 16 cryptocurrency exchanges. Created on March 2018, it is still waiting for approval from the Financial Services Agency, the Japanese financial watchdog. 

JVCEA is going to vote on the proposal during June 27 meeting, though the rules will come into force once the self-regulatory body receives the green light from FSA.

The body wants to stop price manipulations based on insider trading and prohibit exchanges from listing coins that cannot be traced to previous sellers, as they are hard to monitor but easy to use for money laundering. It means that privacy focused on coins like Monero and Dash can be forced out of the mainstream.

The cryptocurrency market reaction is muted so far as both Monero (XMR) and Dash remains in the green zone on daily basis (+3.8% and +3.2% respectively). However, the news may produce clear negative effect later during the day, when European and American traders join the game.