The Japanese Virtual Currency Exchange Association – also known as JVCEA – applied to become a recognized self-regulatory body in Japan. The association wants to gain legitimacy by being an approved entity in the country. This would be a help step forward for Japanese crypto regulations.
JVCEA Applies for Recognition
The JVCEA is formed by 16 different cryptocurrency exchanges in Japan that aim to control the virtual currency market and create an environment of responsibility around cryptocurrencies. The institution has been founded earlier this year by some important platforms in the Asian country after the hack that Coincheck suffered.
At the beginning of 2018, the Japanese exchange Coincheck experienced a hack that resulted in the loss of $500 million dollars, one of the most important attacks ever registered in the space.
The association wants to cover all aspects related to how crypto exchanges work, and create a legal framework to take care of investors in the space.
Important figures in the crypto world are in charge of the organization. These include: Taizen Okuyama of Money Partners as chairman and president, Bitflyer CEO Yuzo Kano, and Bitbank president Noriyuki Hiroeno, as vice chairman. Other important directors are Yoshitaka Kitao and Tomitaka Ishimura.
The JVCEA has filed an application with the Japanese Financial Regulator (FSA) and will allow it to become a ‘certified fund settlement business association.’ If the application is approved, the JVCEA will be providing ‘guidance and recommendations to members to comply with regulations, laws and self-regulation rules.’
Japan has other crypto associations known as the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA).
This Asian country is one of the most active in the cryptocurrency market. Indeed, the society is very connected with the crypto space and the Japanese Yen is the most traded currency against Bitcoin around the world.
With the application filed by the JVCEA the Japanese market will become more mature, investors will be protected against scams, and exchanges would have to take further measures to avoid being hacked. Additionally, in the case of an attack, the crypto platform would have to put users’ interest first and protect them against any possible loss.
