Japan’s primary financial regulator has given a self-regulatory status to the cryptocurrency industry to become a certified settlement business association by allowing an industry body to police domestic exchange.
According to the Reuters report, the Financial Service Agency (FSA) approved Japan Virtual Currency Exchange Association, a body comprised of all 16 licensed domestic exchanges on 24th October 2018. With this implementation, the association gets the power to regulate the sector, safeguard customer assets, provide operational guidelines, elaborate money laundering policies and provide necessary guidelines for the crypto exchange in the country.
In the statement after the approval of FSA, an official from Japan’s Financial Services Agency stated :
“It’s a very fast moving industry. It’s better for experts to make rules in a timely manner than bureaucrats.”
In January, a Tokyo-based cryptocurrency exchange Coincheck Inc., was hacked whereby $530 million were stolen. Following this event, in September, about $60 million was stolen from Tech Bureau Corp, a cryptographic firm. After these two seismic crypto thefts in cryptocurrency sector, both regulators and the industry were criticized. Later, the association submitted a formal application to the FSA in August 2018, asking for recognition and self-regulating powers.
This is yet another milestone initiated by Japan. Last year, Japan was the pioneer in regulating virtual currency trading platform, as a part of encouraging technological innovation safeguarding consumer assets.
With this step, Japan has proved that it is rapidly growing in terms of the blockchain and cryptocurrency industry. Let's hope other countries will follow Japan’s footstep in the upcoming days. What do you think? Will it happen anytime sooner or we will have to wait? Drop your views in the comment section below.