Cryptocurrency exchanges in Japan have been feeling the pressure imposed by Japan’s Financial Services Agency, which has placed exchanges under increased scrutiny following a massive hack in January. Following over $500M in NEM being stolen from Japanese exchange Coincheck, the FSA called for stricter cyber security among other improvements, causing many exchanges to cease operations rather than bolster their operations. The FSA has also issued warnings and even suspended some exchanges from doing business in the region.
However, the situation should soon improve in Japan, as 16 cryptocurrency exchanges registered and licensed by the FSA have come together and launched a self-regulatory body aptly named the Japanese Cryptocurrency Exchange Association. The new association brings together the Japan Blockchain Association and the Japan Cryptocurrency Business Association under one entity.
The Japanese Cryptocurrency Exchange Association is tasked with developing standards for the industry and establish guidelines for ICOs in cooperation with the FSA. The hope is that by increasing regulations internally, faith can be restored in the market.
Taizen Okuyama, President and CEO of Money Partners will serve as chairman of the Japanese Cryptocurrency Exchange Association. Okuyama said that he will “make sure that security measures and internal control are in place” and that the board wants to “eliminate customers' concerns and work to restore public confidence in order to develop a healthy market.”
In addition to Money Partners, bitFlyer, SBI Virtual Currency, QUOINE, Bit Bank, GMO Coin, Bit Trade, BTC Box, BitPoint Japan, DMM Bitcoin, Bit Argo Exchange Tokyo, Bitgate, BITOCEAN, Fiscalo Currency Exchange, Xtheta and Tech BURO are the exchanges that came together to form the Japanese Cryptocurrency Exchange Association.