Two trade organizations in Japan’s digital currency business have agreed to form an as-of-yet unnamed company next month in order to self-alter the local digital currency marketplace along with Japan’s Financial Services Agency, Japanese information outlet Nikkei Asian review reports on March 3.
This cooperation within the Japan’s digital currency sphere comes after January’s hack of the digital currency exchange Coincheck based in Japan, with losses totaling more than $534 million in NEM, the biggest hack within the crypto globe since Mt.Gox. The hack, which was due to a breach of a low security hot wallet storing NEM, prompted the Financial Services Agency to conduct protection measure inspections on fifteen unregistered digital currency exchanges, such as Coincheck.
The exchange groups looking to self-regulate, one among that is the Japan Cryptocurrency Business Association, constitute sixteen registered digital currency marketplace operators. The marketplace operators will reportedly work collectively to create industry-wide investor protection requirements, such as the creation of suggestions for Initial Coin Offerings. The Nikkei Asian Review writes that the organization might be capable of require compliance of its participants, just like the powers held by the Japan Securities Dealers Association.
Taizen Okuyama, president of foreign exchange buying and selling platform Money Partners Group, in addition to chair of the Japan Cryptocurrency Business Association, will serve as chairperson of the new company. Okuyama noted the Nikkei Asian Review that the purpose of this new company is to bring the digital currency zone to bear on self-regulation. Yuzo Kano, the Chief Executive Officer of bitcoin and digital currencies exchange bitFlyer based in Tokyo and head of the Japan Blockchain Association, will serve as vice chairperson.
If the new institution is approved as an independent regulatory body by the authorities, the organization can be capable of limit certain digital currencies from being utilized by registered digital operators within the country if, as an instance, the digital currencies are suspected of being utilized in money laundering, the Nikkei Asian review reports. Even as awaiting Financial Services Agency approval, the new regulatory body will be provisionally open to registered operators and exchanges. In middle of February, seven huge digital currencies organizations joined collectively to create CryptoUK, the first exchange corporation in order to self-regulate the digital currency marketplace within the United Kingdom.