The Japanese cryptocurrency market will self-regulate

Next month, it is planned to create a self-regulatory body for cryptocurrency trading. Two trade groups representing 16 registered exchanges have agreed to create a new organization that will work with the Japan Financial Services Agency to set investor safety standards. She will also develop the basic principles of ICO activities.

“The goal of the organization will be to ensure self-regulation of the entire cryptocurrency sector,” Taizen Okuyama, who will be the chairman of the organization, told reporters. 

Okuyama is president of international currency exchange trading platform Money Partners Group and heads the Japan Cryptocurrency Trading Association, one of two groups responsible for creating the new body.

“Security standards must be established in the industry.” - said Yuzo Kano, CEO of bitFlyer and head of the Japan Blockchain Association. He will be deputy chairman of the new group.

If the government approves the organization as an independent regulator, the body will be able to create a list of virtual coins that can be used by exchange operators, allowing the exclusion of more than 1,500 types of cryptocurrencies around the world that are allegedly used in fraudulent transactions or money laundering activities.

The organization will be open to both registered operators and operators awaiting approval from the Japanese Financial Services Agency (FSA) carrying out activities. Like the Japan Securities Dealers Association, it will have the power to enforce rules among its members.

Last month, seven US and European cryptocurrency companies, including Coinbase and eToro, formed a UK trade body called CryptoUK. The Group intends to create a code of conduct that will contribute to the creation of a healthy trading environment.

According to https://asia.nikkei.com