In an exclusive interview with news.Bitcoin.com, Japan’s top financial regulator revealed its expectations for the self-regulation of cryptocurrency exchanges in Japan. The agency has approved a self-regulatory organization, which it is working closely with to ensure compliance. All 16 regulated crypto exchanges in Japan are members of this self-regulatory organization.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
The JFSA explained to news.Bitcoin.com that it believes “the SRO can take actions flexibly to keep up with the fast-changing environment surrounding crypto-assets,” adding:
We think it necessary [for us] to work with the Jvcea closely so that the association can successfully perform self-regulatory functions through the establishment and application of self-regulatory rules and monitoring of their members.
Furthermore, the association is expected to “set out detailed wallet management processes from the system security point of view and the cross-sectoral rules in areas that are not covered by the laws/regulations, for example, margin trading, for the users’ protection,” Japan’s top financial regulator noted, elaborating:
We expect that through self-regulation, clearer and more detailed rules will be provided as to provisions that are not specified under the existing laws/regulations, as well as self-discipline in areas that are not covered by the laws and regulations.
The agency further revealed that it “works closely with the association by exchanging views about various issues on a regular basis and sharing information on members, unregistered business providers and user complaints,” emphasizing:
In cooperation with the Jvcea, the JFSA has been monitoring virtual currency exchange service providers as to their compliance with self-regulation as well as the laws and regulations.
In terms of whether the JFSA will approve another self-regulatory organization, the agency noted that “There is no limit to the number of SROs under the laws/regulations.” The regulator added, “In the event that another SRO submits an application for approval, the JFSA will scrutinize it from the viewpoint of the applicant’s effectiveness in performing self-regulatory functions.”
What do you think of Japan’s approach to self-regulation for the crypto industry? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
The post Japan Reveals Expectations for Crypto Industry Self-Regulation appeared first on Bitcoin News.
Source: NewsBtc
According to a recent survey by Fidelity Digital Assets, institutional investors, including US pension plans,…
Leading international cross border bank, Standard Chartered has predicted steep price declines for Bitcoin, foreseeing…
The United States Spot Bitcoin ETFS market is bleeding, with reports unveiling outflows exceeding $500…
On-chain data recently showed that Ripple carried out its monthly escrow unlock for May. As…
In a significant legal development for the crypto industry, Changpeng Zhao, widely known as CZ,…
In the face of a general market decline and pessimism, Captain Faibik, a cryptocurrency expert…