Japan Grants Crypto Industry Self-Regulatory Status
Japan’s Financial Services Agency (FSA) has today given cryptocurrency industries self-regulatory status, permitting the Japan Virtual Currency Exchange Association to police and sanction exchanges for any violations.
In doing so, the regulator has bestowed the industry body with the means to create guidelines for domestic exchanges including strict measures to curb insider trading and money laundering while implementing security standards to safeguard customer assets. Additionally, the association will also have to enforce compliance.
“It’s a very fast-moving industry. It’s better for experts to make rules in a timely manner than bureaucrats do,” a senior FSA official said in a briefing, declining to be named.
“We will make further efforts to build an industry that is trusted by customers,” the cryptocurrency industry association said in a statement following the FSA approval.
As the country looks to balance innovation with customer protection, Japan became the first country to regulate cryptocurrency exchanges last year, requiring all exchanges to register with the FSA.
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