Japan’s registered exchanges have formed a new association where they intend to focus on self- regulation. The association will govern, control, investigate and sanction member that will not comply with the self-regulatory rules. The new association is comprised of all the 16 government registered exchanges. The association has already been registered with the Japanese Financial Services Agency. FSA has approved the association which is aimed at improving the of service delivery for exchanges.
The association which will be called the Japan Virtual Currency Exchange Association has already held their first meeting during which their first directors were chosen. They are also planning to elect Money Partners president Taizen Okutama as their chairman during their first board of directors meeting which will be held on 23rd this month. More to that the association will also be formally launched on that day.
During that first meeting, they will also form the rules which will be followed by all registered exchanges. The authority will also have the power to investigate member exchanges in case of any breaches and will have the power to punish any of them for misconduct.
The association was founded by all the 16 registered exchanges by FSA. The exchanges include Money Partners, Bitflyer, Bitbank, Quoine, Bitpoint, Fisco Virtual Currency, SBI Virtual currencies, Zaif, Bittrade, GMO Coin, Bitocean, Tokyo Bitcoin Exchange, Bitarg Exchange Tokyo, Xtheta Corporation and FTT Corporation.
This is however not the first Crypto related association to be formed in Japan since there are two already which are in existence which are Japan Cryptocurrency Business Association (JCBA) and the Japan Blockchain Association (JBA). Japan Blockchain Association is headed by Yuzo Kano who is the Bitfyer CEO while Japan Cryptocurrency Business Association is headed by the president of Money Partners Group who is also expected to become the new chairman of the upcoming association.
The member association is expected to become a member of the already existing associations which will continue to operate despite its formation. It’s also good to note that some exchanges like GMO Coin and CoinCheck are a member of both associations. While the new association will only contain registered members, JBA and JCBA contain all the exchanges even the ones under review. A good example is Coincheck which is not fully registered.
FSA is currently working to strengthen its rules to ensure that all the exchanges in the country register. The consequences of not registering are huge include operating license being confiscated. There are a number of exchanges which are unlicensed in the country like Coincheck which was hacked in January. The exchange is, however, working to ensure it operates are the set rules by FSA.