As it has been revealed, with a view to become a “certified fund settlement business association”, the Japan Virtual Currency Exchange Association (JVCEA) submitted an application to the country’s Financial Services Agency (FSA).
The JVCEA is a group of 16 Japanese cryptocurrency exchanges which was formed in March, being registered with the FSA in April. As it was previously reported by CoinSpeaker, all the members of the group are government-approved, fully licensed crypto exchanges in Japan.
The decision to form such an entity followed the Coincheck hack, when hackers stole approximately $533 million-worth NEM tokens. One of the goals of the new organization is to strengthen self-imposed rules aimed at protection of assets of exchange users, system downtimes, trading and advertising issues.
The ultimate aim of the organization is to increase the level of transparency in the cryptocurrency ecosystem and to ensure confidence from the side of traditional financial system and wider audience. The organization is also st to cover all issues of the work of crypto exchanges and to address the rights of investors in the space.
This being said, a “certified fund settlement business association” would enable the JVCEA introduce self-regulatory rules on the cryptocurrency trading market in the framework of its efforts aimed at proposing stricter industry standards.
Among the key objectives of becoming a certified association, the JVCEA names offering recommendations and rules for its members which would help them lead their activities in accordance with regulations, laws and self-regulation rules. It’s expected to result into significant development of the digital currency exchange market and a higher level of clients’ interests protection.
Now, when the application is filed, the Financial Services Agency will need 1 or 2 months to consider it. The FSA will carefully review the activities and principles of work of the association examining whether the association is ready to provide an appropriate management of the group.
It is also said that the association has already prepared a draft of its self-regulation which includes some restrictions that are to be imposed on some crypto exchanges operations. Earlier, it has been revealed that some restrictions on privacy coin listings can be introduced, while insider trading is planned to be banned. Some other restrictions include trading caps for all customers and trading restrictions for different groups of users.
Japan is one of the most mature cryptocurrency markets, which is (among other things) actively working on legalization of its ICO market. In April, a special research group developed and presented guidelines for regulating this form of venture-capital fundraising.
This being said, functioning of a certified fund settlement business association will greatly contribute to country’s crypto market further development and enhancement of protection of all the market’s participants.