Japan’s FSA grants JVCEA to regulate Cryptocurrency industry.
October 25, 2018 6:41 am,
Japan is one of the friendliest jurisdictions for Cryptocurrency trading. Japan’s Financial Services Agency (FSA) has granted the Japan Virtual Currency Exchange Association (JVCEA) the power, position, and authority to monitor and sanction digital currency exchanges.
Now JVCEA will set rules for the protection of digital assets, prevent money laundering through exchanges and give operational guidelines. It has also suggested authorities should also perform the regular audit in order to provide a more reliable regulatory framework and enhance consumer protection. This audit will also make sure that the exchanges have adequate funds to compensate customers in case their platform is hacked. Currently, the FSA has authorized 16 digital assets exchanges to provide trading services in Japan.
The JVCEA will also have the power to punish those operators which do not follow to the safety regulations Japanese authorities have put in place this year.
Japanese Cryptocurrency exchange faced high profile attacks as compared to the western virtual currency exchange in recent years. Secondly, hackers attacked Coincheck, a Japanese digital currency exchange and stole $523 million in NEM tokens. Thirdly, another Japan-based Cryptocurrency exchange Zaif also lost 5,996 BTC and other altcoins to Crypto hackers.
Because of these frauds and high volatility of Cryptocurrency market FSA has to take this decision of putting some rules that would safeguard customer’s funds and sanction defaulting exchange platform. FSA also said that there would be strict rules regarding speculative investment in the digital currency.
About Japan Currency Exchange Association:-
JVCEA was established in April 2018. It consisted of 16 companies that had registered as Cryptocurrency exchange.