Japan Allows Self Regulation of Cryptocurrency Industry

AlphaAtlas

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The cryptocurrency market is largely unregulated in many countries, which allows prices to be manipulated without serious repercussions. Today, Japan's Financial Services Agency certified the Japan Virtual Currency Exchange Association, a body made up of Japan's 16 licensed cryptocurrency exchanges. This certification will allow the industry to set their own concrete guidelines, which could mitigate insider trading, money laundering, and breaches stemming from insufficient security measures. Japan already cracked down on cryptocurrency fraud earlier this year, and this seems to be a continuation of those efforts.

The FSA's approval comes at a time when Japanese authorities are reviewing their own regulatory approach toward the industry in the aftermath of two seismic crypto thefts this year. After the infamous Coincheck theft in January, licensed cryptocurrency exchange Zaif was hacked for nearly $60 million in bitcoin, bitcoin cash and monacoin in September. The JVCEA has reportedly drawn up a 100-page self-regulatory draft with rules including a proposal a complete ban on insider trading and privacy coins like Monero and Dash from licensed exchanges. The association has also proposed a 4-to-1 limit on margin trading with cryptocurrencies, restricting the amount of funds investors can borrow on their original deposit.
 
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