News Regulation

16 cryptocurrency exchanges have formed a self-regulatory group in Japan

16 cryptocurrency exchanges have formed a self-regulatory group in Japan. A new cryptocurrency organization has been registered with the Japanese Financial Services Agency (FSA), consisting of 16 crypto exchanges that have been approved by the agency. The organization will focus on establishing self-regulatory rules and will have the authority to investigate and sanction members that do not comply with self-regulation.

It is planned to elect Taizen Okuyama, President of Money Partners as Chairman at the next Board of Directors meeting which will be held on April 23. The organization will be formally launched on that date. The new group aims to establish rules for their member exchanges, and as an organization, will have the authority to investigate and banish member companies.

The Japan Virtual Currency Exchange Association’s founding members are the 16 fully licensed exchanges operating in Japan. They are Bitflyer, Money Partners, Bitbank, Bitpoint, Quoine, SBI Virtual Currencies, Fisco Virtual Currency, Btcbox, Zaif, GMO Coin, Bittrade, Tokyo Bitcoin Exchange (DMM Bitcoin), Bitarg Exchange Tokyo, FTT Corporation, Xtheta Corporation, and Bitocean.

The new association will be a member of both the JBA and the JCBA, both of which will continue to operate. While all members of the new organization are FSA-approved exchanges, members of the JBA and the JCBA also include «deemed dealers», which are exchanges the agency allows to operate while their registrations are being reviewed. Coincheck is in this category.

The FSA is currently strengthening its rules for deemed dealers. Masashi Nakajima, Professor at Reitaku University, who participates in the agency’s research group, asks for «a mechanism that is easy to recognize at a glance» to indicate that an exchange is still unlicensed such as a posting on the exchange’s website.