Japan’s FSA recognizes crypto self-regulatory body, JVCEA

The cryptocurrency regulatory authority in Japan, the Financial Services Agency (FSA) has announced support for the cryptocurrency-self regulatory body. The Japan Virtual Currency Exchange Association (JVCEA) has now been tasked with the mandate to oversee the operations of exchanges based in the country. The body encompasses 16 crypto exchanges and this license allows it to be a ‘certified fund settlement business association.’

JVCEA has been given the mandate to come up with guidelines that will be used to oversee the operations of exchange companies in Japan. This will include anti-money laundering policies as well as setting the standards that will guarantee security of customer funds on the platforms.

The attack on Coincheck where at least $530 million in NEM cryptocurrency was stolen by hackers was devastating for the exchanges in the country calling for an action to be made. The exchanges came together to launch a body that will assist the regulator in overseeing the operations of exchange platforms. The JVCEA sent a formal application to the FSA in August this year asking for recognition. Following a review that has taken roughly a couple of months the body has been allowed to go ahead with its intensions. The body has today acknowledged the approval with a statement on the website stating:

“With the acquisition of the accreditation, we will continue to make further efforts to create an industry that you can trust from everyone who uses virtual currency with members [exchanges].”

The body has already formulated a 100-page self-regulatory draft. The draft is said to be containing other rules including banning insider trading as well as anonymous coins like Dash (DASH) and Monero (XMR).