The Financial Services Agency (FSA) on Wednesday approved the Japan Virtual Currency Exchange Association (JVCEA), a body comprised of all 16 licensed domestic cryptocurrency exchanges, to become a ‘certified fund settlement business association.’
In doing so, the regulator has bestowed the industry body with the means to create guidelines for domestic exchanges including strict measures to curb insider trading and money laundering while implementing security standards to safeguard customer assets.
Japan’s primary financial regulator has formally granted the cryptocurrency industry with a self-regulatory status by allowing an industry body to police domestic exchanges.
The industry association confirmed its accreditation in a statement today, stressing it has “enforced self-regulation rules on the same date.” It added:
“With the acquisition of the accreditation, we will continue to make further efforts to create an industry that you can trust from everyone who uses virtual currency with members [exchanges].”
The FSA’s approval comes at a time when Japanese authorities are reviewing their own regulatory approach toward the industry in the aftermath of two seismic crypto thefts this year.