A total of 16 Japanese crypto exchanges have joined together to form a new crypto association. The goal? To self-regulate cryptocurrencies in order to regain the public’s trust of the crypto industry as a whole.
News outlet Nikkei reported that the Japanese crypto exchanges are looking towards self-regulation as a way to “rebuild public trust battered by high-profile theft.”
More information is going to be released later this year, about trading and disclosure rules. That information can be expected for public release sometime in the summer. In the meantime, the government will continue to review applications.
The 16 Japanese crypto exchanges include Money Partners, Bitflyer, Quoine, SBI Virtual Currencies, Bitbank, Bittrade, GMO Coin, DMM Bitcoin, Btcbox, Bitarg Exchange Tokyo, Bitpoint Japan, Bitocean, FTT Corporation, Xtheta, Tech Bureau, and Fisco Virtual Currency.
The President of the foreign exchange platform provider Money Partners Group, Taizen Okuyama, was appointed as the chief of the new crypto association.
Okuyama reinforced the association’s message: “We’ll pursue self-regulation to further the market’s healthy development and allay uncertainty among cryptocurrency users.”
According to Nikkei, there will be three priorities that the group of crypto exchanges will focus on. The first and foremost priority is the protection of customers. Okuyama stated that Japanese law “requires exchanges to manage customer assets separately from their own.” However, he continued that “such a standard is a matter of course for securities firms and foreign exchange brokerages. Compliance has been patchier among cryptocurrency exchanges.”
The second priority is to guarantee “an orderly rule-making process,” explained Okuyama. He gave as an example the issue of “leverage limits for margin trading and management of insider information, including what currencies a given exchange plans to start supporting.”
Finally, the third priority was about “improving disclosure.” The group hopes to release more data publicly, such as statistics on accounts and assets, so that customers have the information they need to choose the right cryptocurrency exchange.
Regulating ICOs, however, said Okuyama, will be left in the hands of the Japanese Financial Services Agency (FSA).
The FSA is pleased with the formation of this association by these Japanese crypto exchanges and believes that it will help move things closer to reform.
Featured image: The Merkle