At first sight, Self-Regulatory bodies are starting to take shape in different countries. According to Reuters, sixteen Japanese cryptocurrency exchanges will create a self-regulating body in order to better safeguard investors. Apparently, the intention is to take further security measures after Coincheck’s hack.
Japan’s Self-Regulating Body
Japan‘s main cryptocurrency exchanges (sixteen), are working in order to establish a self-regulating body. The cryptocurrency market is not being regulated worldwide yet, but during this year governments may start to take action.
The plan was to merge two existing groups known as the Japan Cryptocurrency Business Association and the Japan Blockchain Association. But after talks, the idea was dropped in favor of the new body to regulate exchanges registered with Japan’s Financial Services Association.
According to Reuters, officials from any of the two institutions were able to answer any comment regarding the new plans.
Croatia is another country that has a self-regulating body known as UBIK. As of today, over 7’ members have joined UBIK. The interest for regulations in the European country is growing and can be seen reflected in this agency.
With these regulations, individuals and enterprises may invest in a better regulatory framework than before. The aim is to also attract more investors that are searching more interesting regulatory environments.
The decision has been taken after Coincheck, one of the largest cryptocurrency exchange sin Japan has been hacked. According to the company, they have lost around 523 million NEM coins (XEM) that at that time were worth $500 million dollars.
Days later, the company released a statement in which they explained that they could refund investors who lost their NEM coins.
The company wrote:
“We realize that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humbles apologies to all of those involved.”
The cryptocurrency space is needing regulations that would legitimize the market and let it grow in a prosperous environment.